What Greece should do next

Dear whom it may concern,

Given the result of yesterdays referendum, Greece now has the option to do pretty much as it pleases – I perceive this as a once in a lifetime chance to make great progress for a nation, so let's not waste it. Below my analysis on the main problems Greece has and my proposed solutions.

In my view, the major problems Greece has in the order of significance and/or urgency:

1)Liquidity crisis – there is not enough currency in circulation in order to operate day-to-day business

2)Geopolitical risks – Greece risks falling to the "dangerous" side of the fence in the power struggle between Russia and EU

3)Lack of demand = unemployment – citizens do not have enough income and/or are too much in debt in order to create demand for labor

4)The willingness to pay taxes – Greece is notorious when it comes to avoiding taxes

5)Structural inefficientness – too large chunk of the nations production is wasted in entitlements (such as pensions) and corruption

With these problems in mind, my proposal for solving most of them (1, 3, 4) is to introduce an electronic (only) currency (eDrakhma, if you will), which is used in parallel to euro. The initial liquidity for the new currency is provided by "printing" a suitable (but equal) amount of it to existence on a daily basis to all citizens accounts – after the desired level of liquidity is reached, the printing should continue on monthly basis if needed (in practice inflation dictates how much you can print).

The new currency should be exchangeable to euros (with a floating rate), and one should be able to pay taxes with it with a 1-1 exchange rate with euro. In practice this means for the purpose of paying taxes, the eDrakhmas will be worth more than when freely converted to euros, and an electronic currency already takes care of most problems with tax evasion.

The nice thing about this setup is that it is free money, so no citizen will refuse using it, but if you decide to print physical bills instead, you will never solve issue 4 (Tax evasion) during this generation.

As for item 2 (Geopolitical risks), negotiate to remain in the eurozone, but do let your debtors know that you will pay your debts when you see that you are able to do it, until then the interest rate remains at zero.

As for the last item (Structural inefficientness), in this matter, your debtors have been right all the time – you need to reduce costs and workforce tied to areas which produce no value by cutting targeted entitlements (such as pensions) and public sector workforce. Luckily, the added liquidity by eDrakhma will significantly boost demand on the private sector, which will create jobs there.


Olen 38-vuotias ohjelmistotuotannon diplomi-insinööri, jolla on takana 10 vuotta suomalaisessa teollisuuskonsernissa sekä parissa ohjelmistostartupissa. Viimeisten hallitusten kyvyttömyys vähentää työttömyyttä muuten kuin julkissektorille työllistämällä sai minut mukaan politiikkaan ja Liberaalipuolueen aktiivijäseneksi. Suomi on todella syvällä suossa, ja ihmettä ei ole varaa enää odottaa. Liberaalipuolueen Helsingin piirijärjestön puheenjohtaja, varavaltuutettu: amos.ahola@liberaalipuolue.fi

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