David Skilling: What can we learn from the Greeks?

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.

Frank Newman: Dairy prices, Greece, and Ruakaka

The prospects of an early revival in dairy prices have taken another hit. The Global Dairy Trade index was down 10.7% at last week’s auction, and the all-important whole milk powder price (which is responsible for about 75% of Fonterra's farmgate milk price) was down 13.1% to US$1,848, the largest fall in 12 months.

The whole milk powder price is now at its lowest level in six years, down 65% from its peak of US$5,245 in April 2013, and a long way from Fonterra's forecast price of US$3,500 a tonne.

Ron Smith: Sounds of the election

Whilst we listen to Messrs Key and Goff and, occasionally, Mr Peters and Mr Brash (and duets from the Greens and Maori), there is also to be heard the distant sound of chickens coming home to roost in Greece and Italy (and, potentially, in sundry other places). Although all the New Zealand parties are, to a greater or lesser extent, in denial about present public expenditure trends, it may well be, that this election will be determined by an inclination to favour the most cautious.

Clearly, what is happening in Greece and Italy has the potential to be a social catastrophe in those countries and the triggering factor is escalating public debt. Apart from the implications for pensions and public amenities (as well as continuing social disorder), it may be worth noting that in both these prominent cases, public confidence in politicians has sunk to such a level, that administrative power has been handed over to non-elected officials. This, in itself, has the potential to become part of a wider problem, and it is a problem that both countries have experienced within the lifetimes of persons still living.