Some people tell me that my proposals in the previous post are good but unrealistic. Well I don’t think so. For the challenged among us including politicians here is a step by step instructions manual on how to get started. Papademos’ first three steps:
- The Finance minister should immediately comply with the demands of the Europeans so as to restore order in terms of liquidity and the conventional business.
- The Foreign Minister should drop everything he is doing and get his Turkish colleague on the phone. The two should draft an MoU which will declare the intent of the two countries to move towards a regional Union of sorts whose future would not exclude a monetary union if need be. The MoU should include an invitation for participation to countries from the Balkan and the entire Mediterranean and aim at adopting the good elements of the EU/EMU construct and reject the negative ones. At the same time it should announce the intent of the two countries to start as many joint business ventures as necessary to guarantee there will never be a danger of war between the two countries. The two countries should also commit to immediately modify their defense dogma so as to cancel outstanding and future weapons orders from EU countries end beyond which are now obsolete.
For Greece this would be an immediate 4% GDP points of savings per anno. For Turkey it would add leverage in its frustrating negotiations with the EU and for Greece it would add leverage which would make its “friends” more friendly. Some form of this regional union will be useful whichever way things turn out, whether Greece and/or Turkey are in the EU/EMU or not. The third step for Papademos would be to swap posts with Venizelos (a provincial attorney has no business in the ministry of Finance) but this third step is unrealistic. Steps 1 and 2 are doable.