Greece’s still in crisis after years of austerity

The situation in Greece is not positive in light of its efforts in recent years to restore its economy. This finding shared by Cyceon’s correspondents underlines the failure up to now of the general economic policy of the euro area, recently strengthened by the popular perception of unmaterialized effects of the alarmist interpretation of the vote in favor of the UK’s exit from the European Union (EU), the “Brexit.”

The renewal by Greek Prime Minister Alexis Tsipras of a request for war reparations up to 269 billion euros to Germany for the Nazi occupation is another indication that Greece seeks both an alternative to its crisis and possibly a political diversion to ongoing economic challenges. The euro area suffers from a certain lack of adaptability and responsiveness to a world shaken by the economic rise of Asia, a currency war and growing unfair competition between WTO members.

That’s why the American economist and Nobel Prize for Economics in 2001, Joseph Stiglitz, stated that “the euro is a threat to the future of Europe” and proposed the creation of a euro for northern Europe and another euro for southern Europe. This radical solution is actually not relevant because the fundamental problem mostly lies in Germany’s dominance on monetary policy in the euro area which precisely fits German interests but not enough those of other countries like France or Italy. In the absence of structural change or increased flexibility, the Greek situation will continue to haunt the euro zone.