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Two days ago, German Chancellor Angela Merkel visited Tirana, where she spoke positively about Albania's accession process to the European Union (EU). On Sunday, Bulgarian Prime Minister Boyko Borisov will be one of the 28 EU leaders, who will decide whether Greece will stay in the euro zone and possibly, in the EU, journalist Kostas Stoupas of capital.gr begins his analysis of the recent developments in Greece.

Yesterday on "Society: Mega Hour ", deputy parliament president Alexis Mitropoulos spoke about the Bulgarianisation of Greek society...

Greece appears to be the last Soviet regime in Europe, which is about to collapse. I have not stopped emphasizing this finding since the start of the crisis in 2010.

For many years, we have indicated that Greece has a much higher standard compared to what corresponds to the competitiveness of its economy. In terms of its Gross Domestic Product (GDP) per capita Greece is among the 40 richest countries but according to its competitiveness it ranks 80th.

Instead of improving competitiveness in order to preserve as much as possible of its high standard Greek society has followed the demagogue politicians who are promising continued prosperity through loans.

The height of awarding the demagogues is Alexis Tsipras, in whose hands the country has happened to end up.

The pure national populism and pseudo socialism of prosperity without working and without a competitive free market have fascinated Greece and the Greeks.

Every time that I have pointed out the risk of Bulgarianisation of Greek society over the past years, I have been ridiculed and accused of fear mongering.

In terms of income per capita, Bulgaria ranks 78th and Greece 38th (data from 2014). But in terms of competitiveness, Bulgaria occupies 54th position whereas Greece 81st.

In Bulgaria, the average salary is 350 euro and the average pension 120 euro.

Bill

The time to obtain the bill for the place that the Greek economy will take started to run officially after the closure of banks on Monday, 29 June.

The state of Greek economy has deteriorated over the past six months compared with the signs in 2014 that the long recession of recent years would reverse.

The economy has returned to recession and the primary deficit has vanished.
After 29 June, the situation has dramatically changed for the worse. To get an idea of ​​the size of what is happening in the economy these days it would be enough to look at the following parameters.

According to statements by the representatives of chambers of commerce, the economic activity in most sectors has decreased by 80-90% since the imposition of capital controls.

In 2014, Greece’s GDP was about 180 billion euro. If we divide the GDP by 365 days, this means 493 million euro a day.

15 days have passed from June 29 until today and therefore, with an 80% decline, we have losses amounting to 6.1 billion euro, or a 3.3% decrease in GDP, in just 15 days...

Since capital controls will last for a long time and so will the blow on confidence in banks and the economy, this shock is expected to continue.

Even if the recession amounting to 3.3% due to the 15-day blow is an excessive valuation on an annual basis and if the decline in economic activity is not 80% but 40%, for example, the total losses that the economy will suffer this year will be incalculable again.

Unemployment will sharply rise, wages will further decline, even where their payment will continue, and public revenues and social security contributions will collapse.

Regardless of whether the euro will remain or the drachma will return, the blow for the Greek economy this year will be heavier than in the five years of memoranda. In addition, the introduction of the drachma will bring even greater chaos, not just economic at that.

Over the past years, Greece has experienced the consequences of the wrong memoranda, reduced salaries and pensions and increased taxes. This year it will feel the effects from the implementation of SYRIZA’s policy against memoranda.

Since many individuals, as well as companies, are afraid of deposit haircut, they are rushing to pay duties, taxes and contributions, which will result in a temporary increase in revenues that will have no equivalent and will not continue in the future...

However, this looks like a tsunami. In the beginning, the sea recedes but then it returns, flooding everything...

New Anatolian disaster

It is impressive that, in many places in Athens and Greece in general, taverns and restaurants are full. The increased flow to supermarkets is due to another reason.

I think this situation is reminiscent of the carefree life in Smyrna (now Izmir) that continued after 13 August 1922, when the Greek front in Afionkarahisar was broken, until 13 September the same year, when the Turks arrived and burnt the largest and most prosperous Greek city at that time.

A few days before the fall of Smyrna, the local retailers continued to place orders and fill their warehouses. After 13 September, most of them turned into refugees, having only the clothes on their backs...

*Title by GRReporter