Two Greeks
have been in the news again recently. The first, Yanis Varoufakis, was
the Finance Minister during the depths of the Greek crisis. He has just
published another book, attracting celebrity endorsements, apportioning blame
to many for the continuing agonies in Greece. FT columnist Martin Wolf
commented charitably on his book, and fellow columnist Wolfgang Munchau
remarkably suggested that the Brexiters could learn from Greece.
Few emerge
from the Greek crisis looking good, including senior Ministers in the Syriza
government. Playing chicken, and railing against austerity and Germany,
may be good fun, but it did little to address Greece’s underlying challenges.
Greece has a debt problem, but the core issue is that Greece is deeply
uncompetitive. Even debt relief and a lower cost structure (or in
extremis, a depreciated currency outside the Eurozone), is unlikely to be
sufficient for the Greek economy to perform better on a sustained basis.