Merijn Knibbe — The 10% of GDP Greek *surplus* on its services trade balance

Yesterday, as part of an attempt to raise the level of discussion about the Eurozone problems, I spent the better part of ten minutes to download a 98 page Excel-file from Eurostat containing data about the last sixteen years of European Union macro economic history. It turns out thatGreece has a surplus of almost 10% of GDP on its ‘international trade in services’ account (among other things: shipping, tourism). That’s a lot by whatever standard and surely when compared with 2% of GDP German deficit. In the EU it is only topped by tiny Malta, Cyprus and Luxembourg. It is caused by the fact that Greece is not only home to one world-class economic sector (tourism) but even to two (the other being shipping), which is a lot for a country the size of Greece....

Real-World Economics Review Blog
The 10% of GDP Greek *surplus* on its services trade balance

Merijn Knibbe

Also

The sting in the tail: there will be another undemocratic ‘federal’ institution, an investmentbank, backed by the ECB. Maybe this institution might, to an extent, make up for the lack of fiscal policy on the Eurozone level, at least by restoring part of the monetary transmission channel, i.e. provide a level playing field when it comes to financing projects in the different countries in the Eurozone. While it might also make up for the present lack of government investment in at least some countries. And it might make the present, asset price increasing, kind of QE superfluous. My idea: the European Parliament will have to get large supervisory powers over this bank....

Is an ECB funded backed a better idea than QE? Varoufakis thinks so.

Sputnik International — Russia Now Top Destination for Chinese Shoppers and Tourists

Russia has become the most attractive shopping destination for Chinese tourists this season, surpassing Japan, South Korea, Thailand and the US, Xinhua news agency has reported. 

Russia surpassed other countries in large part due to the devaluation of the ruble, which, together with the white winter, has made the country a "paradise for shopping" destination among Chinese tourists in the traditionally 'dead' winter season, RIA Novosti has explained. According to calculations by China's "Ctrip" travel agency company, prices for Russian goods have fallen by at least 30 percent, turning Russia into what Guangzhou's Southern Metropolis Daily calls a dark horse for tourism.

In other works, they are no longer going to Southern Europe because the euro puts them at a disadvantage. Don't think that they aren't noticing this in Greece, Italy, Spain and Portugal, which badly need the tourist trade they are losing.

Sputnik International
Russia Now Top Destination for Chinese Shoppers and Tourists