The crisis in Greece (Editorial, July 1) presents the darker side of Greece’s economy that not only threatens to engulf Greece, but also raises questions about the viability and “meaning” of the European Union as an entity. The mess that Greece finds itself in is no doubt one of its own creation. However the solutions being offered to it by the EU — guided by Germany — can only compound its difficulties. Greece needs economic expansion and growth to generate resources to pay its debt and to produce productive employment. However, the “imposed” regime of fiscal frugality and impractical commitments has meant an economic contraction that does nothing to move Greece’s economy to a positive trajectory. The EU needs to take immediate measures to correct this flaw or else it would have a different political map altogether very soon.
Amritpal Singh,Amritsar
The Greek debt crisis revolves around a simple question: whether or not the austerity measures are pivotal in Greece’s recovery. Considering the events that took place after Greece received its first bailout, it seems that austerity measures only further crippled the economy as they discouraged growth by affecting the purchasing power of its people. Therefore, the financial “troika” must re-examine its demands of severe austerity measures and chalk out an alternative path of anti-austerity and pro-growth policies that will enable Greece to emerge from the storm.
Gaurav Moghe,Gwalior
An overreliance on foreign borrowings is what landed Greece in trouble. Resorting to domestic drivers for growth, curtailing imports and effectively tackling the possible slowdown of exports are some important steps that India may need to take in order to insulate itself from a fallout of the Greek crisis. The RBI has rightly suggested moving away from purely export-driven growth. Domestic fundamentals need to be bolstered by India as ‘Greece induced pessimism’ may prove to be a dampening factor for global investors to invest in India. The solution for recovery from possible ill-effects lies in strengthening our domestic economy by ensuring the promised public investment push in key sectors.
R. Sampath,Chennai
