Greece solves all its problems with latest election*

Are you getting a very strong sense of déjà vu?

I know I am. Haven’t we been here before, writing a piece about the events in Greece and the implications for the Euro and the European economy? Which of course takes us on to what procurement and supply chain people should be doing to mitigate risk....

Yes, it’s only a couple of months since we were speculating about the results of the Greek election. And now, after yesterday’s re-run, are matters any clearer?

Well, it looks like the Greek people chose – but only just -  subjugation to the great Euro Gods rather than a leap into the unknown. And analysis shows it was older voters who got their way, something that doesn’t bode well for social cohesion.

There’s a big question now as to whether the parties who weren’t in favour of accepting the bailout terms – in particular Syriza, but also the other left wingers as well as the fascist Golden Dawn idiots – will accept the results or look to take their opposition onto the streets or more direct means of protest. That will determine whether we’re likely to see strikes or civil unrest. Frankly, with youth unemployment at 50%, it seems miraculous that we’ve not seen disorder on a greater scale already – it’s hard to conceive of unemployment at that level not causing mayhem.

And nothing has really changed. The population are split virtually down the middle in terms of their voting, and the bailout money will go to prop up banks and an inefficient public sector, not investment in jobs, enterprise or support to the truly needy. The smart money has decided that it is still only a matter of time before Greece exits the Euro, so expect to see tax revenues continue to decline, leading to even greater deficits, capital flight, and general pain for the population (and more bailouts). The can has just been kicked further down the road...

So, while I’m sure we’ve given this advice before;

  • Look at any critical suppliers in Greece and stay close to them, understand their situation.
  • Consider increasing stock levels if you have critical material purchased from the country .
  • Get legal advice if necessary on any contracts (buy or sell) with Greek firms to understand any implications if the New Drachma suddenly emerges.
  • And personally, I still wouldn’t want to have any business or personal money sitting in Greek institutions of any kind just now...

As you can probably tell I’m not exactly any more optimistic...

* well, maybe not....


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