According to London’s Financial Times leading industrialists in Germany have recommended a new Marshall Plan for Greece, involving both private and public investment.
This is the best (and maybe the only) good news to come out of Europe for many a month. The Marshall Plan, for those too young to remember, was one of the most remarkable initiatives of the Post War era, unprecedented in modern times.
Under the Marshall Plan (named for the Secretary of State George Marshall) the United States committed substantial funds to the reconstruction of war torn Europe. Total investment by the US in the immediate post war period, including the Marshall funds, totaled $25 billion almost 10% of the US GDP. The funds were used to rebuild civil and industrial infrastructure in a devastated Europe.
The Marshall Plan, which was in operation from 1947 to 1951, was surprising in its generosity; victors in war are not noted for their willingness to invest in the vanquished. More importantly the Marshall Plan presented a vast contrast to the hard-nosed tactics employed on Germany and its allies by the Great Powers after World War I.
The success of the Plan contributed materially to the recovery of Europe, which led to the creation of the NATO alliance and (later) the European Union. More importantly it helped heal Europe and put bread on the tables of millions and millions of people. No small accomplishment.
If (and it’s a big IF) the present debt crisis in Greece is going to stabilize somewhere short of default, it must have an upside. Lenders are imposing severe restrictions; Greece is expected to endure crippling austerity, falling lifestyles and real restrictions on its democratic systems and sense of self-determination.
Greece needs a positive future; more than being a wiping boy for global bond markets. The fact that this initiative is emanating from Germany is terribly important, for it is the Germans that are taking the hardest line in this matter. An act of generosity on the scale of the Marshall Plan could not only help the Greek economy, but also heal the wounds that have been inflicted upon the tender sensibilities of modern Europeans. They are badly in need of repair.
Let us hope that this suggestion is acted upon enthusiastically and delivered in the same spirit as the original.