“Although Greece’s trade was extremely unhealthy, this gave the country the ability to continue to indulge in what may be considered a high spending spree with its new currency, the euro.”
Projects such as the 2004 Olympics hosted by Athens are cited by many commentators as an example of the type of profligate spending that led Greece into turmoil.
The Australian Department of Foreign Affairs and Trade puts Australia’s trade with Greece at about $178 million for 2011, with imports from Greece – primarily agricultural and foodstuffs – accounting for the bulk of the trade, at about $149 million.
Mylonas says along with long overdue privatisation measures, the newly elected Greek government will have to work hard to revive the country’s agricultural export trade, especially as it has failed to maintain its manufacturing base. Its once strong shipbuilding industry has also declined, bringing with it large-scale unemployment over the past decade.
“We have many members who have conducted business with Greece bilaterally. Their experience in dealing with Greece has improved considerably over the last 10 to 15 years.
“However, it has to be said that the Greek government could do more to establish greater incentives to attract more trade. Greece is uniquely positioned in the centre of the Mediterranean food bowl and has some of the best produce in the world. The challenge for Greece is to create a greater appetite for their produce in the international arena.”
Mylonas says that while Greece has been in the media spotlight, the nation was but one among many experiencing economic woes.
“The economic turmoil is being felt around the world; the only criticism of the media is the over-focused attention on the responsibility Greece has played in the crisis that America, China, the UK and, indeed, Europe has been facing.
“There is no doubt that the situation is bad, but it’s not just happening in Greece.”
Neither Economou nor Mylonas sees the mooted exit of Greece from the eurozone as favourable.
“At this moment, it doesn’t suit anyone to have Greece leave the eurozone. The European countries have to find some sort of solution that works for all concerned,” Economou says.
He adds that the EU has to deal fairly with all the European nations experiencing hardships if the union is not to fracture further.
For Mylonas, the prospect of abandoning the euro and reverting to the drachma – mentioned by some economists as a way to give Greece back some control of its trade – opens a fresh can of worms.
“The reality is that in the unlikely event that Greece defaults to the drachma, the country has limited prospects to trade its way into prosperity, given that it has never really invested in building or establishing industry.
“The other reality is that the initial EU model with one currency has proven to be problematic, both for the richer countries as well as for the poorer ones.
“There is no doubt that if Greece exits the euro, Italy, Spain, Portugal and Ireland will follow shortly after and this would see the collapse of the EU, which would be an economic disaster.
“Perhaps it is time that Germany and France consider exiting the EU instead and forming their own currency.
“Yes, they would have to write off part of their loans as they will be paid in the current euro currency. However, it would be much better than being paid in drachmas. This would also then provide the remaining EU countries with the opportunity to trade their way out of their current situations.”
If Greece beats Russia on Saturday and qualifies for the quarter-finals of the European Championships, there may well be a few elated Greek citizens nursing hangovers in poll booths wondering in which direction their nation should head.
