EURECA in 2012
Dominique Gautier emphasized the important role of the Greek diaspora.
French experts discuss the Hellenic Recovery Fund plan (EURECA) against the backdrop of our "Project 2012"
Introducing Roland Berger's EURECA plan at a Paris business breakfast, Partners Markus Krall and Dominique Gautier continued to advocate trusting the economy and the people of Greece. "I believe that the crisis has led to what could be best described as a classical Greek 'catharsis'," said Markus Krall, principal sponsor of EURECA . "The crisis has had a real learning effect."
Fates intertwined
One of the major pan-European political challenges of the year 2012 will be to help the Greek fight national insolvency and to stabilize the European currency. Success or failure in this endeavor will have a decisive influence on the political future of many European politicians.
Thus when Dominique Gautier and Bernard Ramanantsoa, Director General of HEC Paris, teamed up for an event related to our "Project 2012 ", it was a natural choice to organize a high-level forum to discuss the Hellenic Recovery Fund project (EURECA).
Keen interest
The aim of the EURECA plan, created and promoted by our firm since last summer, is to protect Greece from bankruptcy and, in particular, from being excluded from the euro zone. The idea is also to massively cut Greek government debt without forcing a haircut on the country's creditors and to stimulate the economy and thus ensure the stability of the euro. The plan has been presented to many European governments and is still being widely discussed.
When Markus Krall and Dominique Gautier introduced the idea to a group of Europe-savvy experts over a business breakfast at Roland Berger Paris, they met with keen interest. Bernard de Montferrand, until 2011 the French ambassador to Germany, saw EURECA's principal merit as providing some room for maneuver. "In the coming months we are going to need growth, and anything that can give Europe more breathing space to introduce reforms, is welcome. This is extremely important politically."
Introducing Roland Berger's EURECA plan at a Paris business breakfast, Partners Markus Krall and Dominique Gautier continued to advocate trusting the economy and the people of Greece. "I believe that the crisis has led to what could be best described as a classical Greek 'catharsis'," said Markus Krall, principal sponsor of EURECA . "The crisis has had a real learning effect."
Fates intertwined
One of the major pan-European political challenges of the year 2012 will be to help the Greek fight national insolvency and to stabilize the European currency. Success or failure in this endeavor will have a decisive influence on the political future of many European politicians.
Thus when Dominique Gautier and Bernard Ramanantsoa, Director General of HEC Paris, teamed up for an event related to our "Project 2012 ", it was a natural choice to organize a high-level forum to discuss the Hellenic Recovery Fund project (EURECA).
Keen interest
The aim of the EURECA plan, created and promoted by our firm since last summer, is to protect Greece from bankruptcy and, in particular, from being excluded from the euro zone. The idea is also to massively cut Greek government debt without forcing a haircut on the country's creditors and to stimulate the economy and thus ensure the stability of the euro. The plan has been presented to many European governments and is still being widely discussed.
When Markus Krall and Dominique Gautier introduced the idea to a group of Europe-savvy experts over a business breakfast at Roland Berger Paris, they met with keen interest. Bernard de Montferrand, until 2011 the French ambassador to Germany, saw EURECA's principal merit as providing some room for maneuver. "In the coming months we are going to need growth, and anything that can give Europe more breathing space to introduce reforms, is welcome. This is extremely important politically."
Markus Krall: "I believe that the crisis has led to what could be best described as a classical Greek 'catharsis'"
Support from abroad
The experts agreed that although the Greek economy did have huge potential, it could not be left to the Greeks alone to find their way out of the crisis. According to Guillaume Klossa from Europanova, a global strategy is needed: "Most Greek decision makers have no vision of what to do. It can only be done by an agreement between the EU and Greece."
In this context, Dominique Gautier emphasized the important role of the Greek diaspora: one of the ambitions of the EURECA plan is to encourage Greeks abroad to support EURECA's goals and to increase cash remittances from the diaspora to help develop the Greek economy.
Too late for EURECA?
Amid much praise for EURECA, Frédéric Bonnevay, economist and partner with the financial services group Anthera Partners, asked if it was not already too late to put the plan into practice, "taking into account that the fire sale privatizations started a year ago." In response, Markus Krall pointed out that there has only been one case of successful privatization so far. All other privatizations were stopped, either because no buyers emerged or due to political maneuvering.
"We think that it could have been much more efficient if it had been done six months ago," Krall said. "But in another six months, the door will be closed because of the shrinking economy and spiraling debt. Each month Greece experiences a macroeconomic loss of EUR 5 bn."
The experts agreed that although the Greek economy did have huge potential, it could not be left to the Greeks alone to find their way out of the crisis. According to Guillaume Klossa from Europanova, a global strategy is needed: "Most Greek decision makers have no vision of what to do. It can only be done by an agreement between the EU and Greece."
In this context, Dominique Gautier emphasized the important role of the Greek diaspora: one of the ambitions of the EURECA plan is to encourage Greeks abroad to support EURECA's goals and to increase cash remittances from the diaspora to help develop the Greek economy.
Too late for EURECA?
Amid much praise for EURECA, Frédéric Bonnevay, economist and partner with the financial services group Anthera Partners, asked if it was not already too late to put the plan into practice, "taking into account that the fire sale privatizations started a year ago." In response, Markus Krall pointed out that there has only been one case of successful privatization so far. All other privatizations were stopped, either because no buyers emerged or due to political maneuvering.
"We think that it could have been much more efficient if it had been done six months ago," Krall said. "But in another six months, the door will be closed because of the shrinking economy and spiraling debt. Each month Greece experiences a macroeconomic loss of EUR 5 bn."
Related study
More information on Project 2012
More news
A world without agents?
Imagine a world without insurance agents - It is hard to picture, but some in the European insurance... >>
Pricing in wealth management
Times in wealth management have been difficult since the recent developments in the financial... >>
