Image via WikipediaThe current state of Greece's economy is shaking stock markets, and creating more worry about the value of the Euro. However there are certain steps Greece could take to relieve the economic pressure it faces, and built a more sustainable economy.
1. Leave the Eurozone
When times were good for Greece, the Euro was an ideal currency for the country. But it also tied Greece to strict monetary policies that may stop the country from initiating the reforms it now needs.
Reverting back to the Drachma, would relieve Greece from the pressures of Brussels, and allow the nation to collect the vast amount of "black" money currently hidden from the taxman to initiate a recovery.
2. An Anti-Corruption Drive
Greece is not the only country in the Eurozone which suffers from high levels of corruption, and nepotism. But a corruption drive could please investors, and allow Greece to clean-up its current status as one of the worse countries in Europe to do business. Ensure Government servants or their spouses cannot run businesses, or politicians receive funding from large business groups.
3. A Sunshine Policy on Tax
Greeks tend to hoard "Black" money, and avoid taxes. Offering a sunshine policy were offenders could repay some of the tax without prosecution, and a possible "break" when the economy turns around. This could entice wealthier Greeks to put something back, rather then hoard, when things are going bad.
4. Encourage Free Enterprise
By allowing Free enterprise to flow into the economy, by giving "tax holidays" to new business start-ups, and other incentives. The unemployed could create their own work, and relieve the state from the pressures of paying social security.
5. Austerity Programs
Start further austerity programs from the top down, shifting the responsibility to those who ruined the country, rather then those who were honest enough to pay taxes. Politicians could do away with some of the perks of power like extensive pension plans, and initiate sharp pay cuts to members of the Greek parliament.
6. Renegotiate Loans
Greece currently has one of the highest debt levels in the World, even surpassing Italy, and the United States. By renegotiating its debts based on a financial plan to encourage investment, and a corruption eradication policy. This could give breathing space to implementing a more sustainable economy.
7. Implement Work-Share Programs
Rather than let the unemployed sit around, implement community work-share programs, were the unemployed can help the local community in exchange for welfare, and valuable training.
8. "Open Door" Investment
After local businesses and the Owners pay the tax they have avoided. Offer an open door investment policy, were they can continue business with "tax breaks," and are awarded for investing funds into the economy.
International investors freed from the restraints of the European Union, could invest in "micro industries," and "green-tech" industries, building a more energy efficient society, which could export to the nearby European Union.
Greece as a nation faces a very hard short-term future, and has to change. But if these strategies are implemented, Greece could have a more sustainable and vibrant economy, that benefits all, instead of the few.
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