This is an important, must-read article from think-tank Breugel, citing latest research. Check it out!

via Can Greece become competitive overnight? | Alessio Terzi at Bruegel.org.

Let me give you a flavor:

Clearly, the latest competitiveness rankings do matter in so far as they illustrate how further and significant progress is yet to be made. However, it would be naïve to believe that a country with admittedly limited administrative capacity, high corruption levels, political instability, and severe spending constraints could achieve top scores like Denmark or Latvia overnight. Possibly it’s also thanks to these reforms that Greece has returned to growth in 2014 – and this is something also the new Greek government should acknowledge, before hastily unraveling the efforts of the past.

Greece has made enormous progress but the new government may well push the clock back, with extreme demands on creditors.

There are no magic solutions. But there are choices, with their respective risks. Then, of course there is the world of ‘unintended consequences’. I hope that the citizens of Greece do not live to regret their choice of government.

Thoughts?