So the people of Greece have voted to reject the terms of their latest bail out. A situation akin to the trades union that blockades the company making some of its members redundant – thus compounding the problem that that the redundancies sought to help overcome.
Although geographically the seat of western civilization, modern Greece has seldom acted up to its heritage. Maybe because the European Union fell for such pressure tactics in the past by allowing Greece to become an EU member state and subsequently part of the eurozone.
There were good political reasons no doubt to let Greece into the European Union in 1981 following the collapse of the former military junta in 1974, but euro-entry was quite another thing. Greece had been massaging its statistics ever since it had entered the EU – at first to maximize its receipt of EU handouts. There is an important paper published by the EU’s statistical agency Eurostat when Greece first applied for euro-entry (which it achieved on January 1st 2001) seriously questioning whether it had truly met the entrance criteria. Even so, once more reason was put aside and Greece was allowed to have its own way.
Because Greece remains one of the most corrupt countries in Europe and few of its citizens either pay tax or pay it in full the rest of Europe (mainly German workers) has been paying much of the revenue normally raised by domestic taxation for over three decades
Now I think is the time for everyone to face up to reality. Greece should not be “thrown out” of the Eurozone or the EU itself. There really is no going back and it is the EU institution’s fault for allowing this situation to arise.
Greece must stop trying to bully other countries and institutions like the IMF into maintaining its economic viability. Interim funding should be offered very openly on the terms acceptable to the funding parties and if they are rejected by the Greek government then it will be up to the Greek population to decide if it wishes to accept austerity or poverty. Maybe, however, it is too late even for this step as the referendum has opted for an almost certain bankruptcy – unless Angela Merkel caves in.
Whatever the future brings a welfare fund to overcome hardship amongst the most vulnerable people needs to be set up by the European Commission on an unconditional basis with an independent organization put on the ground to administer it (otherwise corruption could sidetrack its funds too).
I feel sorry for the hundred of thousands of decent, honest people in Greece who are not responsible for this demise – but that is the peril of even a democracy (and they invented the concept).