Greece : Economy

The bellwether of disquiet among the desperate population of Greece has seen a thin ray of hope surrounding Lucas Papademos – the technocrat economist who is all set to solve their problems by his most crafty ways in this economic armageddon. For this, Papademos is knocking the doors of the economists of European Central Bank (ECB) in Frankfurt to get financial aid, and faculty of University of Columbia and Harvard. Although in this financial dogfight, the former vice president of ECB doesn’t have much time to plug in the loopholes as the masses are eagerly awaiting the bailout, and if his efforts fail, the country might witness a movement similar to the Occupy Wall Street.

However, the profile of Papademos itself evokes an aura of credibility which is the last bet for the impoverished nation in a foreseeable future. Apart from his qualification and experience, his contacts might play a much crucial role in this endeavour. Mario Draghi, the current president of ECB, was his classmate at the Massachusetts Institute of Technology during the 1970s and they have been close pals since. The contact seems rosy for Greece as ECB is its biggest creditor – the owner of $70 billion worth of Greek bonds. Papademos is also well regarded and respected in the power corridors of French and German capitals – the two most important countries in the probable Greek economic bailout.

Papademos also has fairly good relations with IMF and the European Commission (EC). He has categorically stated that to implement this bailout deal is the first task in the roster of his priorities. However, in his capacity as the ECB chief, he dictated the Greek government to repay in full to all its creditors. The reason to uphold this official line is probably to do justice and maintain neutrality as the top man of the ECB.

However, as the Prime Minister of Greece it is exactly the opposite that he will have to do. And he has already started the austerity drive by convincing the private creditors to satisfy with half the amount they owed. He has to take hard decisions now as there is no other alternative if he has to salvage the rot in the economy.

However, the flip side is that there are chances that the already hostile Greek masses can turn against him – making him quit after the elections scheduled to be held in February 2012.

So, Papademos has his work is cut-out now. He has got just six weeks in hand to prove his mettle not only as an efficient economist but also as an effective administrator. In this time, he has to make sure that his country receives the emergency aid of eight billion euros that will insulate it from bankruptcy and help in formulating a balanced and prudent budget. That’s Lucas Papademos’ best bet as of now, even though he has claimed that if given time he has more aces up his sleeve. Perhaps he will have to brandish them sooner than later if he has to save his country and satisfy the people of Greece.