BERKELEY – It should now be clear to even the most blinkered observer that the Greek economy is in desperate need of help. Unemployment is 16% and rising. Even after a year of excruciating spending cuts, the budget deficit still exceeds 10% of GDP. Residents don’t pay taxes. The system of property registration is a mess. There is little confidence in the banks, and even less in the government and its policies.
Barry Eichengreen is Professor of Economics and Political Science at the University of California, Berkeley
Since the economy needs help, here’s a novel idea: provide some. Now is the time for the European Union to come forward with a Marshall Plan for Greece.
Copyright: Project Syndicate 2011