Economic Freedom

What to do with products that are in our own country is not it? They are exported abroad. In this concept, with which the German industry has long been so successful it has now apparently also the Federal Minister of Economics headed.For Bailout for Greece, at the special summit on the 21st € Was decided in July 2011, includes measures to revitalize the country's competitiveness.A key role is played by the lure foreign investors, because they usually have not only investment capital in the luggage, but also modern technologies and efficient corporate structures. In addition, they bring the fresh winds of competition, which is also the long-established domestic companies should do well.

Federal Economics Minister Philipp Rösler now has to call an “investment conference”, attended by about twenty German business associations. Rösler waving to their disappointment, however, not with subsidies for German investments in Greece, but wants to focus on the local environment for foreign investment. The general is the right approach, because foreign aid to improve competitiveness of the Greek would seep into effect until the local conditions are more hostile to investment. The question is whether the conditions can be influenced from outside, or even if not quite alone, the Greek side is required.

The German business associations give itself as the main barrier to investment, credit rationing in Greece. Convincing them is that Greek banks are currently doing really hard with the credit because they lack the cash. Less convincing, however, is that this is not only Greek, but also German investors to present problems. Who can present his own bank a compelling investment project is likely to finance with a loan from Germany also have no problem if the project is located in Greece. There is no reason why the existing programs of the Reconstruction Loan Corporation at the expense of tax payers with special programs for Greece to increase.

As a further starting point for improving the investment environment to give the Minister of Economy and Trade Associations “Improving governance” and “increase legal certainty” to. Clearly it's not just about clearing out of the approval procedures, but also and especially to combat corruption. This is without doubt an important concern, but the gentle observer wonders here, as this problem will be solved because of the outside. There is not much longer be possible, as the problems in this area to speak as clearly as possible, and otherwise to rely on the willingness to reform the Greek society.

As an international model is the German system of dual vocational training. Presumably, the Greek economy would be better off if they could rely on a similar system. But such a system can not simply establish the fact by sending retired German teacher trade to Greece, as agreed at the investment conference. As long as the complementary infrastructure is lacking, the teacher from Germany can do little, especially since they are usually well not even speak the local language.

Roesler would not only retired business teacher, but also trust-retired employees to send to Greece to help with the planned privatization. As with the teachers the commercial cost of such a utility would be small – but the benefits probably. All the previously mentioned measures have in common is that they can align but little, but at least go into the proper politically correct direction.

.

Categories: Thoughts