This is a translation of the article “A PERIOD OF FINANCIAL CRISIS AND LACK OF REASONING”, translated for the benefit of my English speaking friends who may still be interested to follow the ordeal that Greece is going thru with the third Memorandum imposing very harsh austerity measures.
A PERIOD OF FINANCIAL CRISIS AND LACK OF REASONING
An announcement of strikes and demonstrations of various unions and confederations, during the week of 5th of November 2012, prior to the voting, by the Greek parliament, of the third Memorandum imposing additional austerity measures.
Announcement
“The following organizations, unions and confederations of Unions will be on strike in Greece, the week of 5th of November 2012
Public hospitals, Pharmacies, Lawyers, public prosecutors, Confederation of private employees and workers, Confederation of civil servants, Union of Seafarers, Air traffic control employees, Bank employees, Public transport employees”.
The above announcement urged me to write the following article. On the 5th of November 2012
The moment that the Greek parliament has to decide and vote for the third group of extended austerity measures imposed by the “Troika” of the European Monetary Union, the Central European Bank and IMF, is approaching at a certain time that resembles with the darkest periods of the modern Greek history..
The Government.
There is a Government that consists of three partners with different political guidelines. This government appears to find it difficult to respond to the expectations of a society for a new way to solve its problems,
To confront problems without populism, customer relations and corruption that brought Greece to this desperate situation due to bipartisanship.
The main parliamentary political opposition
The opposition is advocating a radical solution that seriously endangers Greece’s position in Europe. This approach takes advantage of the expected, reasonable frustration of the society and is supported by the powerful trade unionist establishment developed over 35 years of strong socialist influence.
The Communist Party
The Communist Party preaches directly or indirectly the overthrow of parliamentarism and the financial establishment of the European Union and of other international organizations in which Greece has been a member since the end of the second world war and the following Greek civil war, recognizing nevertheless that this battle will have to be fought in partnership with the rest of the European opposition, socialist or communist parties and forces.
Extreme right wing
An extreme right wing political force that is emerging in Greece, with old fashion nationalistic ideas and out dated policies. This force is empowered also by exploiting the frustration and fear, generated dew to lack of stability, absence of state presence and the explosive increase of illegal emigration. from central Asia and North Africa.
The Public sector
This is an inflated public sector full of inflexibility, unbelievable bureaucratic processes, corruption and incompetence.
Theprivatesector
The private sector is crippled from enormous unemployment, tax and contribution evasion, with the most important activities of the services and commercial sector performed through off shore companies which …officially steal the country.
Thebankingsector
A banking sector on the verge of bankruptcy, due to escape the funds of depositors in Swiss and other foreign banks.
Europe
A “supposedly” unified Europe which is failing to implement most of the founding Declarations of the Union, while does not appear to be capable of responding to the contemporary requirements especially during these times of crisis.
The Monetary Union
The conflict between North and South has not yet been dealt with, for the moment, in a radical way. On the opposite, it uncovers some hegemonic tendencies of, in many ways, gifted and privileged Germany which managed to take advantage of all benefits of an open market as well as of a political and military support from Europe and USA. Using these advantages, Germany managed, after the unification of East and West, to become the dominant economic power in Europe. Today is demanding the restriction of National independence of most Nations of Southern Europe, including France that present fiscal deficit function, in exchange of balancing the financial relationships among the nations within the European Monetary Union.
The central Fiscal and Monetary control
This loss of National independence is disguised in a form a central financial control.
In any case, this central fiscal control could be considered totally logical and useful but it is still subjected to a large percentage of suspiciousness due to lack of generally accepted rules which would take into consideration common benefits to all for development opportunities and social justice. These rules could be the foundation for a more unified Europe.
Such Europe could be in position to cope more effectively the relentless problems of conflicting interests and the competitiveness within and outside European Monetary Union..
Finally, Europe, is experiences even more pressure from the global crisis, due to a need to adapt to the rapidly changing conditions imposed by the developing countries of the third world , China, India,, Brazil where the power is shifting..
The political administration and management of the crisis by local parties and other powers.
Instead of our politicians discussing convincingly, exchanging views publicly, for the administration of the great problems of our time, we see them, year after year, to repeat ‘cassettes’ obsessions and populism which denigrates the image of Greece in the interior as well as internationally.
Is it really that difficult, for a change, in front of an existing risk of extinction or maximum misery, to find a common ground for a minimum concession among parties excluding extremists so that any negotiation with our lending partners to acquire higher credibility?
Is it really that difficult to convince the Greek public as well as our partners in Europe for some basic facts, such as:
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1. For our lending partners
It would be naïve on the part of Greek public not to suspect the conflict of interest that exists in policies that lead to the devaluation of national wealth
Mrs Merkel her self, in between her regressions, was exposed with statements such as:
“Proceed with your bankruptcy so that we can help you.”
“Send some of your unemployed to Germany”
“Proceed by selling some of your islands.”
Is it that difficult to present the problem of inter dependencies in supplier customer relationships, especially in what is involved in defense purchases?
Is it that difficult to argue that any delay and hesitation in taking decisions induces insecurity that devalues further our National wealth and such practice may involve conflicting interests in the process of privatizations?
2. For our own public.
On the other side, is it that difficult for our politicians to agree and jointly convince our people that it is not possible to live on borrowed money which our European partners should provide, especially if some of them are borrowed themselves at even higher rates, such as Spain.
How is it possible that our politicians cannot agree that the attraction of investments are necessary and such investments cannot be attracted if the main opposition party declares that agreements will be reverted once they come to power.
Further, how is it possible not to agree that trade unionist establishment needs to be restrained at some level to ensure that extreme situations cannot develop to a degree that they create privileges and preferred sectors, especially periods of crisis.
But, how is it possible not to agree that it is impossible to restore mistaken policies of 35 years in two or even four years, imposing just horizontal austerity measures?
How is it possible to accept such burdensome measures without consideration of specific measures to encourage development, which will reduce, at least, the current figure of unemployment.
The lesson
As a conclusion, I believe that we have not yet learned our lesson.
Unfortunately, we are still a nation that has not reached political maturity and has not surpassed the problems that the financial and geopolitical position keeps it captive.
We are still experiencing a post civil war situation and we risk loosing many of our National and financial achievements.
One may wonder, in which way we could restore credibility for the implementation of a long term, stable policy which may contribute to an upgrade of the country to a higher level of social and economical position, at no risk of our National security.
Nick Kouzos
5th November 2012
Note added on November 17th :
Some comments from friends following this write up were in full agreement with my statements but considered my conclusions as very pessimistic.
Now, after the positive voting by the Greek parliament of the Memorandum and the 2013 budget, a slim glimpse of hope seems to be rising.
It has become more evident that the problem is beyond Greece’s control, it also became more apparent that Europe and IMF were in disagreement over the sustainability of the Greek debt.
IMF was becoming an unexpected friend for Greece as they were insisting for a second “hair cut” but Germany was still objecting.
As Greece is holding its breath waiting for a final decision from Euro Group over getting through the long expected cash injection of 31 Million Euros, it is becoming more obvious what the real game is about much bigger stakes.
Europe is going thru the test, the crisis is affecting the southern countries and social unrest is increasing, it is very obvious that Germany is seriously being affected as well by the reduction of their exports, but it would take more than Germany to save Europe. Europe needs IMF.
Germany was gaining from the crisis as funds were moving from London to Frankfurt, considered a safer resort, but this is not totally true any more.
I believe that Germany is learning its lesson, they are talking about development funds now, they are also learning that making money on interest, gained from countries in distress is not contributing to the European idea, neither to development. They are also learning that Germany needs Europe as much as Europe needs Germany, that is the only way to confront the Global crisis eminent.
So, finally Greece proves to be the «experiment» for the evolution of the European multinational model.. I believe it is the beginning of a real improvement for Greece and Europe.
Let us wait and see what will happen on the 20th of November at the next Euro Group.
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Times for Change 