Greece and the EuroZone: Accept Reality and Defaultsnip
"......Not only has Mr Papandreou to get parliamentary approval for €28bn of spending cuts, tax increases
and privatisations, he must begin implementing this draconian programme by 3 July, in time for the next
extraordinary meeting of eurozone ministers. Even in ordinary times this would be regarded as ambitious,
but to do so amid the worst recession the country has seen in four decades would require a miracle...
snip
But these are small compensations to a Greek teacher who has seen her salary cut by 25%, an employee of
the Piraeus port authority who suspects his company is about to be sold to the Chinese amid thousands of
job losses, or a freshly minted graduate who knows they will struggle to get any kind of job.
An abrupt
and drastic drop in living standards has been imposed on the Greek people – ultimately to keep afloat banks
across Europe that have lent recklessly. The vehement message that has come from the Greek people over
the past month is that they will not stand for it – and nor should they. What in José Manuel Barroso's
words is good news for the EU is terrible news for those who have to live with the consequences.
Greece's main opposition leader, Antonis Samaras, for one, is no longer buying it. His economic logic is
impeccable: the imposed cuts are squeezing demand at a time when the economy is in deep recession. Indeed
, it is already happening: 50,000 businesses went bankrupt last year and the economy is in its third
straight year of recession. The fact that the main conservative opposition points this out, however, is a big new twist.
snip
http://www.guardian.co.uk/commentisfree/2011/jun/23/greece-eurozone-reality-default