The Franco-German axis that has “tied” Greece in economic misery was slammed by Russian prime minister Vladimir Putin, marking the first such public outrage from an international leader. “Greece was artificially deprived of the ability to restructure its economy” said Putin while speaking at this year’s Troika Dialogue Russia Forum, which is the equivalent of the “Davos” economic forum.
Putin said that Greece had every opportunity to restructure its economy in 2008, but it was suddenly burdened with a deficit which did not exist! “They began measuring amounts in the deficit that were not supposed to be measured. This made the situation unbearable, and the spreads sky-rocketed leading to economic disaster.”
He described the euro as a “weight” that was tied to Greece’s feet and said that Greeks were denied the opportunity to devalue their national currency, and thus increase their liquidity.
“What was the outcome?” asked the Russian Prime Minister. Since Greece did not have any liquidity, and could not print any currency, “it had to directly reduce social costs which led to poverty. This is a great tragedy. First they deprived Greece from its industrial base and then asked the country to produce from invisible industries… and without money!”
It is practically impossible to achieve competitiveness said Putin, because in order for Greece’s economy, its industrial sector and its real economy to make a jump start investments have to be made. This is also impossible, he noted, in the present period. “Who is going to invest in an economy without an internal market? We could buy some state companies cheaply but this would be looting, similar to that which took place in Russia. And it is risky because domestic consumption in Greece will continue to decline.”
And because many countries in the eurozone are facing similar difficulties as in Greece, foreign aid is not possible either, he added.
“The issue is not that the Greek people do not want or do not know how to work,” added Vladimir Putin, throwing indirect poisonous arrows towards German Chancellor Angela Merkel who had stated that “Greeks do not work enough.” Opportunities have not been created so that there is an effective utilization of the labor force with highly skilled individuals, as it has for example in Russia. And this is the root of the problem.”
Attendees and participators were in full agreement with Putin’s statements who not only described how the economy in Greece was devastated but also how difficult it will be for our country to finally pull its head out of the water.