Journal Article
A New Approach for Saving Greece: Perspectives of Success? (original publication German only)
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European Union & Euro
Economic & Financial Crises
Europe
In 2010, the first economic adjustment program began offering a blueprint for economic recovery and a feasible way for Greece to emerge from the crisis. The authors show that Greece neither overcame its structural weaknesses nor developed export industries as a driver of growth in the course of reforms. They conclude that Greece’s sectoral structures still mirror a low level of industrial development as well as a service industry with a below-average growth performance compared to other EU countries. Greece’s composition of exports is similar to the export patterns of low-income countries due to a focus on raw materials and labor-intensive goods. Their analysis also shows that without significant growth, the Greek debt will remain unsustainable. A haircut or a phasing out of the debt burden can only complement supply-oriented structural reforms, however. To fulfil the requirements of the Memorandum of Understanding from August 2015 Greece also needs a broad range of external expert knowledge because the Greek public administration itself is a subject of reform.
