EFTA01457960.pdf

Mint: pOittelt, FOCUI Itt be 4,,p(., Irrattincrtt it&I 9: iionts Aisablas pflpsctixrs Pon/0o 7ien.c.r.ovktyn ,cbas holes: lack of competitiveness, inefficient loaders who reignite their enthusiasm Change through pressure bureaucracy, clientelism, capital flight, for it. There must be a clear definition brain drain. For quite a while, it has not of concepts such as self-responsibility, The month of July once again was been able to keep afloat on the strength of solidarity and subsidiarity in Europe focused on unforeseeable twists in the its own resources and even threatened to again, and they must be embraced in Greek tragedy. The Greek population sink in 2010. It was rescued by the Troika reality and not just in theory. These are the is presented with a harsher reform coming aboard. Perhaps the latter started basic pillars of a fiscal union a genuine package than it had turned down in the to plug the wrong holes first and missed fiscal union and not a simple transfer referendum, and how does it react? some completely. But the ship continued union. Transfers, such as in the form It accepts the package and supports to sink simply because the holes were of structural funds, have been a basic Prime Minister Alexis Tsipras more than too many. The process of sinking was at element of European politics tor decades. ever. The odds for successful reforms least slowed down and even somewhat Sut the desired economic convergence are therefore better than for all his reversed in 2014 when Greece reported will regularly fail to materialize as long as predecessors. Continuing pressure from a primary-budget and current-account the institutional framework is flawed. A Europe is helping too. surplus - although these figures should stimulus quickly turns into reliance and be taken with caution. Despite only a inertia. It is indispensable for Europe's restrained implementation of reforms, economic and political future to optimize there was a kind of dynamism. The Greek incentive systems alongside control people should bear this in mind during the and sanction mechanisms uncomfortable times ahead. and that citizens keep their trust in the How will the compromise affect the value binding force of of the euro? rules. It is a shame Compared to what? The euro of a perfect that the German arid monetary union? The euro after "Grexit"? French governments, An exchange rate is a dynamic matter and who should have can never be explained in a monocausal been exemplars, way. Should the centrifugal forces in the undermined this Eurozone increase and the belief grow trust by breaking the that the ECB does finance public debt Maastricht rules as early after all, this will gradually translate into a as 2002. weaker euro and lower government-bond prices. Does Athens need a debt relief? Short-and medium-term debt service is the smallest problem Greece faces. Discussing this is a waste of time. What is important now is putting the country structurally back on its feet so that it attracts domestic and foreign investors. Irrespective of the amount of debt it owes, Greece has no future without foreign direct investment. How to stop ouro frustration? One thing is for sure: Europe must continue to develop, deepen its commitments to its citizens and present Asoka Wohrmann CVIew I Amcgi.77t E4tenI Atvw 20, 0 7 CONFIDENTIAL — PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0117694 CONFIDENTIAL SDNY_GM_00263878 EFTA01457960