And one that does not have to do with Athens’ infamous bookkeeping practices. From the New York Times:

But property ownership in Greece is often less than clear cut. So Mr. Hamodrakas put a padlock on his gate and waited to see what would happen. Soon enough, he heard from neighbors. Three of them claimed that they, too, had title to parts of the property.

In this age of satellite imagery, digital records and the instantaneous exchange of information, most of Greece’s land transaction records are still handwritten in ledgers, logged in by last names. No lot numbers. No clarity on boundaries or zoning. No obvious way to tell whether two people, or 10, have registered ownership of the same property.

Yikes. There is more here. I highly recommend it.

Forget fiscal and monetary policy, Greece needs to instate a decent property rights regime before it can become a wealthy and healthy property-owning democracy.

This should not be surprising for a couple of reasons, but only if one is somewhat familiar with the modern history of the region. The Balkans has been, until very recently, under the thumb of various empires governed from afar (Ottoman and Austro-Hungarian). Once independence from foreign despots was attained (through war) in the nineteenth century, these states then had to survive more war (World Wars), endure more occupation (through the same world wars), and then navigate their young states through the Cold War (where dictatorship was sometimes preferable to ideological considerations, and sometimes integral to ideological considerations). In addition, Balkan states have had to constantly deal with threats from each other as well.

If anything, the inclusion of these states into the European Union is probably the best thing to happen to them in a long, long, long time. It is unfortunate that bureaucrats in Brussels decided to hastily implement a single currency without first ensuring that each of the member states possessed the institutions necessary for protecting clear and well-defined property rights.

Update: On the other hand, entry into the EU was probably (correctly) seen as a way to strengthen institutions associated with protecting property rights.