The Greek economy at some point met all the preconditions for an economic takeoff.
It could have happened both because (with the exception of Italy) that is the trend in the eurozone and because the exit from a crisis is usually accompanied by a strong dynamic of economic growth.
Yet, the Greek economy is straggling as is evidenced by the fact that first quarter growth is the lowest in two years.
What is worse, the economy remains stagnant despite the rise in benefits that aim of which is to stimulate consumption.
The policy of handouts did not produce the results that the government expected.
On the contrary, the government’s policy of over-taxing families appears to have played a pivotal role in keeping the economic growth rate at a low level.
The economy does operate in a political vacuum. It is influenced by government policies.
In that sense, the government’s basic argument that after the completion of the third bailout programme the economy would turn a page has been belied by events.
Citizens in the recent elections punished the government for its failure to deliver, and the reaction of markets is hardly encouraging.
As it seems, a political change is needed before the economy can turn a page.