Cyprus-Forum.com

[miltiades]

The money markets are certainly not reacting as if Greece was to exit the EZ.
The Euro is in fact higher against the British pound, only just at 1.402, than before the Greek referendum when it stood at 1.416.

The Markets are generally a good indicator of economic events anywhere.
There is no doubt that a Greek exit from the EZ would have uncharted consequences for the rest of the EZ member nations as well as worldwide.

My belief is that a viable solution will be agreed upon and that Greece will not exit.

[supporttheunderdog]

I sincerely hope that whatever happens it is what is best for the average Greek in regenerating the economy and providing real jobs with real net income to Greece and its peoples. I think it a shame that the car makers and many other industrials looked at developing plants in Turkey - why not e.g. Greece? I know there is some industrial involvement eg Bosch-Siemens Hausgeraete GmbH have Greek based interests but it is sadly limited.

[kurupetos]

The money markets are certainly not reacting as if Greece was to exit the EZ.
The Euro is in fact higher against the British pound, only just at 1.402, than before the Greek referendum when it stood at 1.416.

The Markets are generally a good indicator of economic events anywhere.
There is no doubt that a Greek exit from the EZ would have uncharted consequences for the rest of the EZ member nations as well as worldwide.

My belief is that a viable solution will be agreed upon and that Greece will not exit.

Greece will not exit the EZ. IMO, they will eventually reach an agreement in the next few days.

[Jerry]

I sincerely hope that whatever happens it is what is best for the average Greek in regenerating the economy and providing real jobs with real net income to Greece and its peoples. I think it a shame that the car makers and many other industrials looked at developing plants in Turkey - why not e.g. Greece? I know there is some industrial involvement eg Bosch-Siemens Hausgeraete GmbH have Greek based interests but it is sadly limited.

Much cheaper to manufacture in Turkey, lower wage costs. Somehow I doubt the Germans will be too keen to invest more in Greece whatever the outcome.
It was the now fading prospect of Turkey entering the EU that encouraged the inward investment, probably wouldn't happen today.

[Tim Drayton]

Turkey is in a customs union with the EU. That means that they can export all they can manufacture in Turkey duty-free to the EU without being hampered by any EU social and environmental regulations. The fact that Turkey is unlikely to progress to full membership is a plus for these multinationals.

[Jerry]

Turkey is in a customs union with the EU. That means that they can export all they can manufacture in Turkey duty-free to the EU without being hampered by any EU social and environmental regulations. The fact that Turkey is unlikely to progress to full membership is a plus for these multinationals.

You are right of course but membership of EU is more permanent than a customs union. Turkey actually threatened to quit the customs union if its demand to be included in the TTIP was not met. It looks like negotiations are going in Turkey's favour but, surprise surprise, Syriza threatened to veto the Transatlantic Trade and Investment Partnership.

[Tim Drayton]

Turkey is in a customs union with the EU. That means that they can export all they can manufacture in Turkey duty-free to the EU without being hampered by any EU social and environmental regulations. The fact that Turkey is unlikely to progress to full membership is a plus for these multinationals.

You are right of course but membership of EU is more permanent than a customs union. Turkey actually threatened to quit the customs union if its demand to be included in the TTIP was not met. It looks like negotiations are going in Turkey's favour but, surprise surprise, Syriza threatened to veto the Transatlantic Trade and Investment Partnership.

The customs union is permanent, as far as I know.

[Jerry]

Turkey is in a customs union with the EU. That means that they can export all they can manufacture in Turkey duty-free to the EU without being hampered by any EU social and environmental regulations. The fact that Turkey is unlikely to progress to full membership is a plus for these multinationals.

You are right of course but membership of EU is more permanent than a customs union. Turkey actually threatened to quit the customs union if its demand to be included in the TTIP was not met. It looks like negotiations are going in Turkey's favour but, surprise surprise, Syriza threatened to veto the Transatlantic Trade and Investment Partnership.

The customs union is permanent, as far as I know.

Not according to Turkey, a hollow threat or blackmail, take your pick.

http://www.al-monitor.com/pulse/origina ... rship.html

[Tim Drayton]

Either way, it appears that the exclusion of Turkey from the TTIP will dilute the benefits of the customs union. I haven't had a chance to look at this in detail. However, as one who believes that globalisation is really about the interests of large corporations dominating the world agenda, I can't help feeling that Turkey's anomalous status as a country with free trade with the EU but freed from all of the restrictive EU legislation was deliberately contrived so that multinationals could have a convenient manufacturing base to supply Europe from and, whatever changes are made, they will not hurt these powerful corporate interests.

[Nikitas]

I happen to follow a certain industrial sector for years. The say that Turkish firms have no environmental restrictions is an understatement.

Operations which in Italy need closed systems with zero leakage of chemicals, and constant monitoring from enviro inspectors, in Turkey are done outoors and the effluent is tossed untreated. Wood working with no vacuum systems is common, as is metal treating with phosphate solutions in open baths. The economic advantage is obvious and the reason why much of the Italian production has moved there.

But this is not development, it brings no new knowhow to the country, and it is not a foundation for further development. It is 80s technology installed for short term profit. As robotics become more reliable and cheaper much of the manufacturing is moving back to Italy, because most modern machines come with integrated closed loop scrap handling, obviating the need for further investment on that score.