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With talk of a third bailout in the air as it battles with international lenders over reforms, Greece is getting some foreign advice from the media on what it needs.

Greece Can Teach World Needed Lesson

Forbes Magazine – Steve Forbes

DEAR PRIME MINISTER Tsipras and Finance Minister Varoufakis:

You may have won a four-month reprieve of sorts from your creditors, but your situation is desperate, and everyone knows it, most particularly Europe’s paymasters, the Germans. As you just painfully learned, your ability to blackmail your creditors is a fraction of what it once was. Businesses, banks and others have had plenty of time to prepare for the worst-case scenario: Greece’s exit from the euro zone. Your own citizens have no faith in you, as evidenced by the massive cash withdrawals from Greek banks and the exodus of capital from Greece to supposedly safer havens.

You do have something of a case in your objection to raising Greece’s already horrific 23% VAT (a form of national sales tax). And you are right when you say the present program isn’t working. But your ideas–higher taxes on the “rich,” more government bureaucrats, virtually no privatization, higher minimum wages–are worse.

If you’re serious about saving your country and rescuing its people from a more dreadful economic catastrophe, there are basic steps you should take that would promptly promote economic growth, while giving you the priceless political opportunity to tell the troika–the IMF , the ECB and the EU (i.e., the Germans)–where to get off …

Bulgaria and Macedonia each have a flat-tax system of 10% on personal incomes. Adopt your own 10% flat tax. Then go one better and slash your corporate tax rate to 10%. While you’re at it, whack your VAT to 15%, which will demonstrate your commitment to the downtrodden. As for your ridiculously high payroll tax of 45%, knock it down to 10% as well …

Stop trashing former Greek residents or those of Greek descent who want to help out by investing in Greece. The government should welcome such investors with open arms, not suspicion. Also, you should urge your own citizens not to regard them as unwelcome interlopers …

Make the process of setting up a business in Greece easy. Greece has made some progress in enabling people to set up legal enterprises, but the process still takes too long and offers opportunities for bureaucrats to demand that palms be greased …

Change labor laws that kill job creation …. Don’t even think of abandoning the euro …

And, for goodness’ sake, don’t pull a Cyprus and confiscate bank deposits.

Why The Drachma Can’t Save Greece

CNBC – Leslie Shaffer

Fears Greece may exit the euro and revive the drachma abound, but attempting a return to the currency Athens left behind would have tragic results, Goldman Sachs said.

“Transitioning from the euro to a new national currency is no straightforward task either for Greece or for Europe,” Goldman said in a note Monday. “Greece can’t just (re)introduce a national currency.”

Debating whether to rekindle the drachma, or drachmatization, isn’t just an academic question. With negotiations over Greece’s debt and finances proving touchy, the possibility the country may exit the euro zone, a scenario dubbed “Grexit,” has become more likely, analysts say, although they still assign a relatively low probability.

“The probability of an accident is still there,” Goldman said …

‘But if Greece follows a Medea-like course to thwart hated austerity and reform programs, its economy could face a tragedy akin to the Euripides play, which left Medea’s faithless husband mired in grief …

Greece’s Survival Depends On More Than Debt

Financial Post – Peter Foster

Anybody who imagines that Greece is now on the road to sanity and solvency should have been disabused by statements out of Athens over, and since, the weekend.

On Monday the government of Alexis Tsipras, the “Greek Chavez,” announced that  it is holding up approval for the refining facilities attached to a major gold project, the Skouries mine in Northern Greece, which is owned by Vancouver-based Eldorado Gold.

Another bad sign was the announcement by Prime Minister Alexis Tsipras this past weekend that he would be submitting legislation to provide free food and electricity to 300,000 poor households, stretching repayment terms for those behind on their taxes (with up to 100 installments!), freezing home foreclosures, and ordering a legislative probe into the debt crisis, as if the crisis was some kind of impenetrable mystery. Equally disturbing is the administration’s claim that its commitment to “the institutions” (The IMF, The European Commission and the European Central Bank, the group formerly known as “the troika”) is one of “constructive ambiguity” …

One can only have sympathy for poor Greeks, particularly those who didn’t vote for Mr. Tsipras, but all this grandstanding and using the poor as human shields – the traditional posture of socialist scoundrels – doesn’t inspire confidence that the Greek government has seen the light.

Source: The National Herald
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