Salient to Investors:
Former IMF deputy managing director John Lipsky said:
Efforts to rescue Greece have failed to provide the basic structural reforms needed. The austerity measures are exacerbating economic pain and won’t found a lasting recovery. Little is being discussed about the truly seminal issue of progressive loss of competitiveness in the euro zone.
Greece needs to remove trade barriers and become more export-oriented to have any hope of returning to growth. The astonishingly limited amount of foreign trade in Greek GDP given Greece’s tiny size shows how special interests have kept the Greek economy out of the single market.
If economies like Greece, Portugal, Spain and Italy cannot recapture competitiveness, they won’t achieve economic and financial success.