Europe, ouzo and the drachma



by Emmanuel Bouhalakis

The most recent "round" of speculation about the bankruptcy or not of Greece had all the ingredients of the previous "rounds". Pessimistic or apocalypse scenarios about the debt crisis spreading to Europe and from there to the USA, analyses of economists about the inability of the Greek government to impose a fiscal program that has been agreed with its EU partners and the IMF, and most recently a barrage of voices from inside the German government to have a "plan B" ready if Greece decides to wave good bye to the Euro and return to the drachma.

It is true that the Greek government has found itself in a very awkward position having to announce new austerity measures each month, especially to a nation that despite the fact that many of its citizens live comfortably, has seen salaries drop by 30 or 40%, has witnessed unemployment close to 20% and with a private sector in shambles with thousands of employees not getting their salaries on time for months.

This critical percentage of the population and the misery it now witnesses makes the socialist government careful in announcing further measures. The list of privatizations and expenses cuts is big enough to create another shock in the public sector where many civil servants will have to be put in reserve status for a limited period of time and then possibly fired. 

Even yesterday, the minister of economics who is also the vice president, announced an extra tax in houses as per their size and market value. This autumn many people will also receive notifications from the tax offices to pay more taxes. The VAT in restaurants has also been increased.

Even if Greece had been the most debt ridden nation in history, such measures would have been staggering in such short period of time and at least prove that the country has made great progress in establishing transparency and in putting its budget in order, thus honoring its commitments with the EU and the IMF.

However, much of Europe seems to have labeled Greece as terminally ill and forever bearing the mark of the outcast, the lazy, the disobedient and the lawless. Much of the EU press "screams" about the end of patience of EU towards this country. As if a country is made up of computerized people who must hear and obey at whatever cost in their standard of living. And, most significantly, as if transforming a country into an African state is the price to be paid to please the money markets, known for their vulture - like attitudes.

Europe ought to stand by Greece and help it overcome its problems. We need a Europe of solidarity and understanding rather than statistics and bureaucracy. After all, the Euro was supposed to have been created for this reason. Otherwise, many Greeks would be happy with their drachmas and their ouzo. They had been so before the euro was created. Why not again?

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