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Kevin Featherstone

October 18th, 2011

Hasty, Indiscriminate Cuts Will Not Help Greece

2 comments

Estimated reading time: 10 minutes

Kevin Featherstone

October 18th, 2011

Hasty, Indiscriminate Cuts Will Not Help Greece

2 comments

Estimated reading time: 10 minutes

Sir, The debt crisis demands deep reforms by the Greek government. What it doesn’t require is a ham-fisted insistence on public expenditure cuts that stifle future prospects for recovery.

I write as a member of the Greek National Council for Research and Technology, which provides advice to the Ministry of Education on policies towards universities and research institutes. We are busy putting in place reforms that will radically alter the research landscape, helping to find an exit from the crisis and to establish an engine for future economic growth.

There are many inherited problems, built up over successive governments, to overcome, including inertia, poor monitoring and the misallocation of resources. Yet, we have witnessed the determination of key stakeholders to engage in serious reform. A cross-party consensus is evident on future research policy. There is much scientific talent and dedication, with pockets of excellence, to build on.

But the danger today is that the research infrastructure, as well as many other related institutions, may disintegrate due to the inordinate pressures being placed on the country. I ask your readers to appreciate being asked to restructure an entire research establishment, not even in months but in only a few weeks, as is being currently demanded by Greece’s international creditors. Under the inordinate time pressure of the “troika”, the only choice is to make financial cuts indiscriminately and without evaluation, with potentially grave consequences to the future prospects for recovery. Already, there is a worrying brain-drain; scientists have faced drastic cuts; and there is an imminent and general threat of salaries not being paid.

Greece’s creditor governments need not doubt the will to engage in deep-rooted reforms, but it is imperative – indeed, in the interests of both Greece and Europe – that the country be afforded the opportunity for an orderly implementation of such measures.

 

This piece first appeared as a Comment Letter in the Financial Times (Tuesday, 18 October 2011)
 
Note: This article gives the views of the author, not the position of Greece@LSE, the Hellenic Observatory or the London School of Economics.
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About the author

Kevin Featherstone

Kevin Featherstone is Eleftherios Venizelos Professor in Contemporary Greek Studies and Professor in European Politics and Hellenic Observatory Director

Posted In: Crisis | Economy

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