Obviously, to actually hold a plebiscite is nonsense. What would it achieve? If the result were “yes”, there would still be close to 50% of the people vehemently opposed to the government’s plan. And if it were “no”, it would be a fast route to poverty and perhaps even anarchy. Apart from the fact that one cannot even envisage what question the voters should be asked.
However, the threat of a plebiscite which would bring down the stage of a carefully crafted bank rescue plan for which Greece would be making available her balance sheet is an excellent negotiating tool. Congratulations on that, Mr. Prime Minister!
The big shortfall of all measures to date is that the Greek government is being forced to radically reduce its expenditures without, at the same time, implementing measures to stimulate growth in the economy. The expense cutting on the part of the public sector cannot be avoided. When the public sector shrinks, the rest of the economy must grow in order to keep the overall result bearable for the population.
So the stage is set for a wonderful new approach: the EU has become accustomed to throwing around 3-digit billion EUR numbers in connection with what they call “help for Greece”. With those dimensions, it would truly be “chickenfeed” to throw in, say, another 10 billion EUR for growth projects in the Greek economy. While the 3-digit billion numbers don’t do Greece any good, 10 billion EUR for the Greek economy, if invested well, would produce wonders.
The question would be how that 10 billion EUR are best spent in such a way that one gets “most bang for the buck”; i. e. the maximum number of new jobs and new income for Greeks out of productive activities. If the monies are handled by public entities (be that the EU or the Greek government), the risk is that they may to a large degree end up in the wrong pockets. The ultimate test of what a good investment is is whether or not a private investor would also make it voluntarily.
The EU should consider the following: make the 10 billion EUR available to serious investors (inside and outside of Greece) who have convincing investment plans for value-generating new investments in Greece which create jobs and income for Greeks (and income taxes for the Greek government).
And when the EU has finally decided to help the Greek economy, the plebiscite can be called off.