Given that the Greek economy contracted by 7 percent of gross domestic product last year and is on course to complete this year one of the sharpest peak-to-trough drops seen in the developed world, the idea of growth in Greece almost seems like a bad joke. Yet growth is the new buzz word in Brussels. Twelve EU states recently signed a letter demanding a greater emphasis be placed on it, analysts are talking about it, European Parliament President Martin Schulz came to Athens to talk about it and politicians are trying to find ways to generate it. Growth is very much the new black, or at least this year’s austerity.
It was in this vein that a meeting between European Commission President Jose Manuel Barroso and Greek Prime Minister Lucas Papademos took place in the Belgian capital this week. Although growth is the word on everybody’s lips, the talk of boosting economies and creating jobs in the EU remains rather vague. Tuesday’s talks between Papademos and Barroso did not produce a specific conclusion but they had a much greater focus than we have been accustomed to.