The Greek Financial Crisis: light at the end of the tunnel?
The (EU / IMF) imposed austerity measures on the
Southern European States, (SES) which could not service their excessive loans
compared to their GDP. Moreover theEU
encouraged the SES to eliminate waste and adopt practices which promote
innovation and world competitiveness. As can be expected high unemployment
figures resulted.
The following comparisons are here made between the highly
competitive Northern European States and the SESs. The lowest unemployment rates were recorded
in Austria (4.9%), Germany (5.2%) and Luxembourg (5.9%) while the highest rates
were recorded in Greece (27.6% in July 2013) and in Spain (26.6%) [1]
.
While these figures cause concern, the youth
unemployment figures for the SESs are alarming. The lowest youth unemployment
rates were observed in Germany (7.7%) and Austria (8.7%) and the highest in
Greece (57.3% in July 2013), Spain (56.5%) and Croatia (52.8% in the first
quarter of 2013)[1]
In the light of these statistics it is not
surprising to read that many professional Greeks migrated to the prosperous Northern
EU States or to non-members states of the EU.
While reference [2] is a qualitative report of the exodus of
professional Greeks out of the country, reference [3] claims that 120,000
professionals left Greece since 2010, the start of the country’s financial
crisis in search of better opportunities. And that high figure, which
constitutes 10 percent of the country’s potential, is very high according to
Lois Lambrianides, the study’s director.
The
professionals consisted of doctors, engineers, IT professionals and scientists
who found it increasingly difficult to find work amid deep cuts to funding of health
care and other publicly supported sectors.
Giorgos Christides
writes [2] “In an era characterized by intensified global competition
for talented, innovative and highly-skilled workers, the brain drain afflicting
Greece means the country is losing its best hope of revival.
“Viewing your country as a dead-end and a prison is therefore a
more daunting and condemning prospect than defaulting or exiting the euro.”
According to a 2012 Gallop poll Greeks remained the
world’s most pessimistic nation [4] . More explicitly 38% of Greeks
rate their future lives worse than their current lives.
A recent report is what most observers
were waiting for.
“Greece’s recession eased in the third
quarter of this year (2013) while the unemployment rate stood at 27.3 per cent
in August, unchanged from the previous month. The government has described the stabilization in the job market as the "first sign of recovery" [5].
Undoubtedly this is good news but it is too early to
crack open a bottle of champagne; we have to wait for more positive data in the
next few months before we begin the celebrations.
References
1 “Euro area unemployment rate at 12.2 %.” 159/2013 – 31 October 2013
2 “Greece brain drain 'wrecking my social life.” 23 June 2012 . Giorgios Christides
3 SPIEGEL ONLINE. “Brain Drain.” 120,000
Professionals leave Greece amid crisis. 10/04/2013
4 “Gloomy
Greeks Remain the World’s Most Pessimistic Nation.” Global Economic
Intersection. Niall
McCarthy,
26.07.2013
5 “Greece jobless rate steady.” Derek Gatopoulos. Nov 15, 2013
