Spyros Roukanas

A reputation risk perspective on the Greek crisis

The economic crisis of Europe has realigned the notion of a nations reputation (or its branding) in a prominent way. Using the case of Greece as an example, we interpret the Greek crisis from the fresh perspective of reputation risk management. From this perspective, we show that the Greek crisis, on one hand is deeper and more holistic than the pre-crisis dim macroeconomic outlook would suggest. From the other hand, we suggest that the crisis could have been avoided had reputation risk management been encapsulated as a mechanism for guiding Greeces decision-makers. We infer that, the lack of the equivalent of national-level reputation risk management techniques at the governance echelons is one of the root causes of the crisis and the key catalyst for the rapid escalation of what at first instance appeared to be bad nationwide public financial practices and policy making into a European and nearly global financial event.

The Vicious Circles of Recession and Development Prospects

Abstract Almost four years after Greeces entry to a financial support programme, the Greek economy is still facing recession. The aim of this article is to analyse the interconnections between five vicious cycles of recession and highlight the countrys development prospects. The five vicious cycles of the Greek economy are as follows: a) fiscal, b) internal devaluation, c) financial, d) psychological, and e) sociopolitical. These five vicious circles of recession must be seen in parallel with the adjustment policy applied. The results of this policy have created the preconditions for the maintenance of the recession. Also, other deficits of the adjustment policy and structural weaknesses of the Greek economy continue to limit the prospects of recovery for the Greek economy. We conclude with certain suggestions that might enable Greece to overcome the major obstacles to economic development.

Culture, politics and economics: dynamics, mechanisms and processes for sustainable development

We argue that culture is an endogenous force of economic development. As such, it should be integrated into the framework of analysis of the dynamics, mechanisms and processes that lead to sustainable development. This shift in contemporary development thought is not random, since the concept of culture has acquired a new dynamism. Development and culture strengthen one another, but also one is a prerequisite for the other. This paper aims at illustrating the need for a composite analysis framework related to the impact of culture on sustainable development, based on dynamics, mechanisms and processes defining the relations between economics and politics, state and market along with values, ideas, principles, perceptions and local culture.

Social Dialogue in the Era of Memoranda: The Consequences of Austerity and Deregulation Measures on the Greek Social Partnership Process

The aim of this paper is to contribute to the current debate on the consequences of joint EC-ECB-IMF Programmes that directly impact on the Greek industrial relation system via an analysis of the changes in the institutional framework of the labour market and the social partnership process. Moreover, it will test the hypothesis that the Memoranda have had a negative impact on the quality of social dialogue in Greece.

The GrExit Paradox

Abstract In this paper we consider whether the potential of Greeces exit (GrExit) from the Eurozone has an impact on Greeces economic adjustment program and vice versa. In particular, we ask the question whether the “GrExit” d iscussion is leading into a Catch-22 situation: Greece is expected to default if it does not follow through with the economic adjustment program, when, at the same time, the economic adjustment program appears to be an unsustainab le strategy for revers ing the Greek economic downfall. Our find ings are based on analyzing the literature regard ing (a) the possibility and consequences of a Greek exit from the Eurozone, (b) the viab ility of the Greek economy given the adjustment program, and (c) the magnitude of the discussion regarding Greeces troubled economy before and during the crisis period.

The “Cloud” Europe and Germany as the European Stabilizer

Abstract Since the global economic crisis emerged, the European Union confronts several and substantial challenges in its roots. The fundamental European vision of stability, growth, prosperity and economic convergence seems to be at stake, mainly, by the citizens of the countries that suffer from the consequences of lengthy austerity measures and economic recession. The European Union itself changed since 2009. As the Franco-German axis is crumbling, Germany – even reluctantly for some analysts – became the essential leading force in the EU and hard fiscal policies dazzled bright characteristics of the EU. Intergovernmental controversies are coming at the front of the stage once again. We argue that is time for the European Union to seek for another approach of itself, an approach beyond the narrow intergovernmental processes, beyond even the “spill-over effect” model that guided the monetary unification. The aim of this paper is to draw the “cloud Europe” approach, show its characteristics and attributes. The “cloud Europe” scheme, based upon the “cloud Computing” characteristics from the field of ICTs, can stimulate again the European vision, and revitalize the European cooperation in terms of positive and reliable aspects and not just in terms of heavy fiscal discipline. We use a theoretical adaptation from the ICTs’ area to the political field of the European organization and successful cases of best practices such as the progress of Estonia towards the digital economy and the growth of digital infrastructures. The leading role of Germany in an approach like that can turn the country into a European stabilizer.

Keynes and the Eurozone's Crisis: Towards a Fiscal Union?☆

The majority of the peripheral member states of the Eurozone Portugal, Italy, Spain, and Greece have experienced financial crises. Until now, the European leaders attempted to solve the crises mainly through austerity measures. For them, either it is an ideo logical or a political matter; the answers have identified with the free market beliefs. In this paper, we will argue that until now all the solutions that have been agreed on the European level do not help to solve the root causes of the Greek financial problem. The national governments of the European Union do not follow any of the Keynes ian ideas to overcome the cris is. The European leaders seem to have forgotten their role to act as a policy makers. Under these conditions, even if the Greek financial problem can be moderated, it cannot be solved. The above observation is highly significant for the future of the European Union because every currency union in order to survive needs a mechanism of fiscal transfers. This mechanism does not exist in the Eurozone. Thus, this crisis will continue to affect the performance and function of the EU.

The Political Economy of Eastern Mediterranean

This article analyses the political economy of the Eastern Mediterranean under the prism of the current international economic crisis. The international economic crisis, which firstly manifested in 2007, directly affected certain economies of Eastern Mediterranean. For this purpose, initially we analyse macroeconomic indicators which capture the economic position of Eastern Mediterranean countries in the international economic system. In particular, we study the macroeconomic indicators for evaluating the prospects of these countries as follows: GDP, GDP per capita, GDP growth, central government gross debt, net lending (+)/net borrowing (−), inflation, unemployment, and current account balance. Then, we analyse bilateral economic relations among Eastern Mediterranean countries in order to highlight their degree of economic interdependence. In particular, our analysis focuses on trade relations among countries, net inflows of foreign direct investment and the critical role of energy. Finally, we attempt to identify further prospects for economic cooperation among Eastern Mediterranean countries in the current highly uncertain global economic and political environment.

Energy Security and National Security: The Case of Israel

The scope of this paper is to examine the parameters and factors that energy security and national security consist of, how they interact between them, and finally how they are applied in the case of Israel.

The New Productive Model of the Greek Economy: The Contribution of High-Technology Sector

The manifestation of the global economic crisis in 2007 and its consequences have driven the European economy and, more specifically, the Greek economy to new challenges for adjustment to the new era. In 2010, Greece adopted a fiscal adjustment programme in order to fix the fiscal weaknesses of its economy. After almost 7 years since the fiscal adjustment programme was adopted, the Greek economy is even worse off than the parties involved in the Greek programme had foreseen. For this reason, the aim of this chapter is to examine the productive capabilities of the Greek economy as a means to overcome the recession and stagnation. Exports are a tool for overcoming the stagnation of Greek economy that resulted from the internal devaluation policy. According to the latest available data, Greece is still facing a trade deficit. Its trade balance has improved after the integration to fiscal consolidation process mainly because of the reduction in imports. Greece’s accession to the Economic and Monetary Union and the adoption of euro strengthened consumption against investment. We are going to examine the Greek economy’s performance in regard to high-technology exports. High-technology exports generate higher earnings. The study of certain commodities that embody high technology in comparison with EU-28 and OECD member states will reveal the Greek economy’s potential to meet strong competition in the global economy. The methodology that is adopted is comparative advantage theory.