Greece: As John McEnroe used to say, “You cannot be serious.”

Last Friday I was in the Berkshire Hills in western Massachusetts helping one of my daughters and her husband build a yurt in which they intend to spend the summer, so I didn’t get around to reading the Friday FT until yesterday. On page 2 there was an article describing the differences between Greece and the creditors in five areas: 1. Primary Surplus, 2. Value Added Tax, 3. Pensions, 4. Labor Markets, 5. Privatizations.

It looks like Greece and the creditors differ mainly on VAT and Pensions, and on pensions they are heading in the same direction but Greece wants to go slow. On VAT, the creditors want two rates: 11% for essentials and 23% for everything else. This is pretty much the situation that already exists, but the Greek government wants a third, lower rate for very essential items: Medicines, books, magazines, newspapers and theater tickets would be taxed at only 6.5%. (Certain Greek islands would be exempt altogether.) Despite my deep respect for the classical Greek theater (think of Sophocles, Euripides, Aristophanes!), this special treatment, which would include showings of Frozen and the Die Hard series, struck me as odd.

The fundamental problem in Greece is that its official tax rates are punitive so everyone evades them. 26% for corporation doesn’t sound bad, but it’s universal like the US, and social security is 42% (26% for employers and 16% for employees, plus the 23% VAT on purchases.)

Maybe the Greeks would prefer a purely socialist system? I say stop bullying them and let them go.