The Greek debt trap: an escape plan. Bruegel Policy Contribution 2012/19, 7 November 2012

Without corrective measures, Greek public debt will exceed 190 percent of GDP, instead of peaking at the anyway too-high target ratio of 167 percent of GDP of the March 2012 financial assistance programme. The rise is largely due to a negative feedback loop between high public debt and the collapse in GDP, and endangers Greek membership of the euro area. But a Greek exit would have devastating impacts both inside and outside Greece. A small reduction in the interest rate on bilateral loans, the exchange of European Central Bank holdings, buy-back of privately-held debt, and frontloading of some privatisation receipts are unlikely to be sufficient. A credible resolution should involve the reduction of the official lending rate to zero until 2020, an extension of the maturity of all official lending, and indexing the notional amount of all official loans to Greek GDP. Thereby, the debt ratio would fall below 100 percent of GDP by 2020, and if the economy deteriorates further, there will not be a need for new arrangements. But if growth is better than expected, official creditors will also benefit. In exchange for such help, the fiscal sovereignty of Greece should be curtailed further. An extended privatisation plan and future budget surpluses may be used to pay back the debt relief. The Greek fiscal tragedy highlights the need for a formal debt restructuring mechanism

Why is the Greek economy collapsing? A simple tale of high multipliers and low exports. CEPS Commentary, 21 December 2012

In an attempt to understand why the Greek economy is collapsing, this Commentary points out two key aspects that are often overlooked – the country’s large multiplier and a bad export performance. When combined with the need for a large fiscal adjustment, these factors help explain how fiscal consolidation in Greece has been associated with such a large drop in GDP.

Effects of biosolids from tomato processing on soil fertility and wheat growth in a Greek alfisol

The effects of biosolids from tomato processing on soil properties and wheat growth were investigated in an Alfisol from central Greece. Biosolids were mixed with soil from the surface (Ap) or subsurface (Bt) horizon in plastic containers at rates of 1%, 5%, and 10% by dry weight (d.w.; equivalent to 10, 50, and 100 Mg ha–1). Biosolid treatments were compared to an NH4Cl application (50 mg N kg–1) and an untreated control in (1) a 102 d incubation experiment at 28°C to determine biosolid nitrification potential and (2) a 45 d outdoor experiment to evaluate effects on soil fertility and wheat growth. Mineralization of biosolids in the incubation experiment resulted in accumulation of nitrate-N and indicated that biosolids were able to supply N that was in excess of crop needs in treatments of 5% and 10%. After 45 d of wheat growth, available soil nutrients (N, P) and P uptake by wheat were distinctly lower in the Bt than in the Ap horizon. However, soil pH, electrical conductivity, organic matter, total N, nitrate-N, extractable P, and exchangeable K increased with increasing rate of biosolid application in both soils. These were followed by corresponding increases in wheat nutrient uptake and biomass production, thus demonstrating the importance of this organic material for sustaining production in soils of low immediate fertility. Compared to the NH4Cl treatment (50 kg N ha–1 equivalent), biosolid application rates of 5% and 10% had higher available soil nutrients, similar or higher nutrient uptake and higher wheat biomass. But only an application of 10% biosolids provided sufficient N levels for wheat in the surface soil, and even higher applications were required for providing sufficient N and P in the Bt horizon.