Which is ultimately the crucial element of the Greek economy that could make a difference? The books say about supply and demand, I will concentrate on the second. Because when there is no demand for something, such factors as the means of production, costs and competitiveness have become superfluous. When the purchasing power of a society tends to zero, neither supply is covered, nor there is development can be achieved and the productive new generation is doomed to unemployment. That should say a long-term recession period.
Another important element, which is long enough in the news lately, is the financing of businesses. The solution is not the ease with which a bank lends to customers - indeed this was one of the reasons we are in this situation today, nor the occasional development programs of the EU used to strengthen balance sheets in order to pay dividends. Debt markets and capital gained from loans can only give credit to businesses. No credit as it's descibed in the sccounting books. Credit of time. And nothing is fixed if a company goes bankrupt in six months instead of today. Customers. Consumers with purchasing power. That's what companies lack of. Customers who will provide the necessary liquidity needed by the backbone of the Greek economy. Extraversion is the "vehicle" to be used to find. The population of the EU is approximately 500.000.000 inhabitants. The U.S. is restricted to "only" 300m. residents. With such a large public group of purchasers the only thing we need to do is to listen and then to enhance it. An economy that produces for a community that is incapable of consuming is doomed. Neither austerity measures will bring prosperity, nor taxes.
Even the state machine itself is unable to move towards this direction - that of attracting foreign investment. High tax rates, endless bureaucracy, ambiguous and constantly changing legal framework.
So let's begin to look a bit further. More structured, with a programm that describes hows' and whens' of the fiscal policies of the years to follow. The epoch with the fat cows are gone for good and there are no other sources for milking. Let's be more honest, let's work harder and hope that this example will be given from the highest echelons of the goverment...