Plan C for Greece

It is amazing to follow the news on Greece. Is Europe reacting too strict? Is Greece playing a game? 

Please read the June 26 Proposal of the EU to Greece (Plan B). If you were Greece, you wouldn't be happy. But the details of the measures show that there is plenty of room for improvement of Greek economic system. Many Greek don't pay taxes. And they seem to have many exceptions.  

The European Union wishes to keep Greece inside the Euro. Not only for financial reasons. In this period of time Europe needs strength and solidarity in view of the inflow of refugees and other internal and external threats So, a Plan C for Greece should also possibly apply to other debt ridden countries. Then economies can be restructured and the EU as a whole will be strengthened. New jobs can be created.

Click here for my Plan C for Greece

I'm just a humble European. But..... may be someone is inspired by elements of this Plan C. So I have given my positive contribution, my ideas and insights, that may possibly be of use. If you like to react or comment on this Plan C, please be welcome to send a mail to

Greece can then make a new start: the New Hellenic Republic. The support of the Greek population can be used as a lever to establish a new tax system (Social Tax) like several East-European countries, This Social Tax has a simple structure. It has no exemptions. Some Eastern European countries make use of this Social Tax. Czechia for example. No exeptions. 

Let's not forget that poverty alleviation is very important. Nowadays we have poverty growing in the EU! A shame! How to institutionalize Solidarty? When don't we ask the banking system to come up with creative means to fight poverty and to forster the creation of jobs? The establishment of the EFSI-fund ('Juncker Fund') is a good initiative!

Money creation injected at the basis of the market

I have the impresssion that money creation can be channeled through the issue of paper money to citizens. I also have the impression that thus the creation of money can become more in balance with the amount of money discreation (by unnecessary bankruptcies for example). Then inflation can increase to about 2 % - as is the goal of the ECB. Central banks have created new money (QE) to counteract this inbalance. QE now is mostly channeled through the baking system. So my suggestion: why not channeling this QE via the very basis of the economy?

Credit and debt in the world

When considering the debts and credits of the EU, Greece is certainly not just a small fish. But look at the USA! That really is scary! On the other hand Japan has a tremendous credit position. The Japanese fight with too low inflation. My suggestion: why not 'sell' a bit of inflation to Japan by offering a position in a Ellas (Greece)- Joint Trust for State Assets (E-JTSA), such as the harbour of Piraeus? This E-JTSA takes over say about 70% of the Greek debt. E-JTSA is owned by Greece and some Credit Nations, among which for the biggest part the EU-creditors. 

Other alternative income to the JTSA Funds

I have included an Apologetic Fund as well in the Plan C. Not only for Greece, but also for the other debt ridden countries, like Portugal and Spain. Take one promille of all transactions at FOREX, the market for foreign exchange. That will yield billions a year, that can be used to alleviate the debts of many countries, both in the US as in the EU. By this measure we counterbalance the uncontrolled growth of the amount of money in a cycle of money creation - money utilisation (into capital) - money discreation (bankrupcies, disasters etcetera).

The stricter regulations for lending by banks push many firms out of business. Banks become healthier at the cost of business. Quantitative Easening is then a good tool to keep the money cycle going. My suggestion: don't channel the QE to banks, but to businesses that innovate or to - yes - people who can buy goods in the market. The ECB could take over part of the payment of social security of countries like Spain. Spain is severely hit by the several crises, in which the money system can be partly blamed. When the ECB injects paper money via social security ( = people) into the real market, this flow of money will eventually reach the reserves of the banks. But in a bottom-up flow. The money cycle can then become like the cycles in nature.

A EU-lottery may bring in further means of income to the several JTSA Funds that need be established for debt ridden countries. When this lottery is well televised and pimped with inter-european exchange, more solidarity may grow amongst the peoples of Europe. 

Other concepts of Plan C

In the coming days I will elaborate on the other concepts of Plan C. The basic philosophy is that this Plan C is not only meant for Greece. Most measures can also be applied to the other debt ridden countries of the EU. 

The work of economics like Lietaer and de Grauwe seem to support this approach. I will relate to their work later.