Dominic Frisby talks to Athens resident, former bond trader and business man, Stratos Manolas.
Greece faces a dire social situation with an unemployment rate of 25%, a rise in poverty, illegal immigration and capital flight.
In the years leading up to the debt crisis, Greek politicians gladly took EU subsidies without assuring the productive use of those funds, which lead to an increase in debt and corruption. At the same time the regulatory setup in Greece has hindered the entrepreneurial spirit of the country. While the latest reforms were necessary and had good elements, Manolas criticises the implementation of reforms, and how the IMF forced them upon the people.
The majority of Greeks still favour staying in the euro. Manolas states that a move to the drachma and the subsequent power to manage their own currency could lead to the postponement of necessary structural adjustments. They agree that the eurozone will continue to “muddle through”. Amid the gloom though, Manolas sees some positive signals for investing in Greece.
This podcast was recorded on 14 October 2012.
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Greece - from the inside