Galery

1

The real state deficit in Greece is over 13% of the GDP despite the tough economic measures, estimated the former Minister of Finance Alekos Papadopoulos. In an interview for the Nei Fakeli broadcasting, he called on the pro-European forces in the country to wake up, and supported profound reforms, real privatizations and elections in the form of a referendum in which people should take their personal responsibilities.

The former Minister of Finance stressed that "the government said it will reduce the state deficit to 8.1%, but when revised in 2009 it reached 9.4%. It is estimated to be 10.2% currently but if go deeper into the matter it will reach 11%. If we add the obligations of the state to the private sector we will get over 13%. What did we do this year? This indicates a country that produces deficits and can not close the gaping wounds."

The former minister in previous PASOK governments warned of approaching disaster, deadlock and slow death of the Greek economy. "The Greeks have not realized that we are under international economic control since April last year. Our lenders make decisions and impose measures and we do not borrow when we do not implement them. We are under a moratorium. The question to the Greek people is not whether we will go bankrupt or not, but whether the country will collapse or not."

According to Alekos Papadopoulos, the bells on the rising state debt have tolled since 2008, and the largest of them warned of the balance of the current accounts, which reached 14% of the GDP in 2007, 2008 and 2009. This is one of the highest values ​​throughout the world, formed in the period of hyper consumption and excessive indebtedness.

"The storm will not pass and we will never return to the previous state of carelessness, when banks had opened the taps of loans. We are in a state of complete economic deadlock and collapsed manufacturing base."

According to the former Minister of Finance, in 1972 the Greek economy has undergone a period of de-industrialization, and now is the period when the craftsmanship is disappearing.

"The problem which we have to resolve is not managerial, but deeply political. The powers that are trying to cope with the crisis are those that led the country to bankruptcy," said Alekos Papadopoulos. He added that "despite its good intentions the government is not making any reforms, but small set ups," which are the result of pressure from the clientelistic system.

"There is a lack of courage and conscience to lead to bold privatization. Why aren’t the Public Power Corporation, the telecommunication company, Agricultural Bank and Postbank fully privatized yet?" asked he and called trade unionists chieftains and captains of populism.

Alekos Papadopoulos said that if Greece leaves the euro and returns to the drachma 610 billion in foreign debt will be converted into a debt in euros and will have to be paid in foreign currency. "Devaluation in order to increase competitiveness applies to producing countries," he said.

The former minister stated he would refuse to any proposal by the Prime Minister to take the lead of the financial institution because "My understanding is different from what is imposed in the country at the moment. I will not hold the posdt to play the role of a false ruler."

Alekos Papadopoulos defined state institutions as "poor entities" and "parainstitutions." "We can not eradicate these things if they do not face strong forces." He called for radical reform and a national orientation of Greece in another direction.

"Debt restructuring means bankruptcy and will lead to complete disaster. The only way to recover is to gain the confidence of financial markets again and an amicable settlement of the debt after radical reforms."
 
The former "King" of the Greek economy determined the Prime Minister George Papandreou as an innovator, but "his association with the traditional and populist forces after the 2004 elections is what caused the current problems." According to Alekos Papadopoulos, elections in the form of a referendum should be hold in Greece in order the Greeks themselves to take their responsibilities.

At the same time, two thirds of the participants in a poll of the British media giant BBC think that, Greece will announce suspension of payments. Economists believe that there is no way the country to achieve its goals on finance and development and to make the debt manageable.

14 of the 52 economic analysts that took part in the survey even believe that Ireland will walk the hard path of Greece, and 7 of them argue that the same will happen with Portugal. However, most economists believe the euro will survive in its present form.

"The restructuring is essential" is the title of the article by the chief economist of Deutsche Bank Thomas Maier in the central daily newspaper Frankfurter Allgemeine Zeitung. The German political edition Der Spiegel also makes the assessment that the Greek debt will be restructured. The article expresses the view that the delay of the failure will be more expensive for the European Union than a controlled bankruptcy of the countries. The author also argues that the more Athens postpones the inevitable restructuring of its debt, the greater will be the amounts of interests payable on behalf of the European rescue mechanism.