Unme Jeans

The Greek economy is on the move. But small individual successes are not enough to beat the recession – By Jerry Sommer

Nikos is standing proudly behind the glass counter of his new diner close to Omonoia Square in the center of Athens. He has just opened – right in the middle of the Greek economic crisis. “Nothing ventured, nothing gained,” the balding 46-year old says with a laugh. For him the crisis proved to be an opportunity.

For 10 years Nikos sold pitas with cheese from his 65-square-feet kiosk to passing customers. Then the neighboring business went bankrupt and the 650-square-foot shop remained vacant until its owner lowered the rent. Nikos gathered all his savings and took his chance.

Now his customers can choose between cheese pitas, sandwiches, cakes and all kinds of beverages. They can sit down and enjoy their meal in a more relaxed fashion. Nikos is optimistic: “I have my regulars from the offices close by. And I’m also hoping for more passing trade.”

The interior of the newly renovated diner is inviting. The walls have been painted with a mural depicting lush green meadows, a blue sky and the sun. But outside, there is no sign of flourishing landscapes, neither in downtown Athens nor in its surrounding districts.

Every fourth shop in the Greek capital is vacant. The retail sales volume decreased by 23 percent in 2010; the Greek economy shrank by 4.6 percent in 2010; and the estimate for 2011 is negative growth of more than 3 percent. In light of the Greek government’s increasingly drastic austerity measures, little improvement can be expected.

But Athens is forced to stay the course by the EU and the International Monetary Fund. Otherwise they won’t lent money to Greece to avert national bankruptcy. So the Greeks are adjusting. Already they are buying fewer new cars – 150,000 last year compared to 300,000 in 2006. They are vacationing less often and saving on clothing, shoes, beverages and food.

Unemployment is 15 percent and...