The Results of the Adjustment Program for the Greek Economy

Abstract

Abstract The adjustment policy for the Greek economy in the period 2010-2014 proved that improvement was not achieved. Quantitative economic targets connected to the adoption of internal devaluation provided results in regard to fiscal adjustment (a primary surplus) and the balancing of the budgetary situation in Greece, but without being connected to a plan either in the framework of the program or outside it, that would attempt systematically to create areas, sectors, and policies that would constitute the basis for economic recovery. The requirements of service of the country's obligations (debt) do not, under currently valid conditions, allow for the creation of positive prospects to free it from the vicious circle of debt service and adjustment and for potential progress of the Greek economy. The necessary reorganization of the economy, for multiple reasons, by obligation presupposes a new plan and agreement with Europe, which will put forward conditions and policies capable of creating a dynamic framework for the growth of the economy in the present and in the future.