Why then Greece?

Maybe not even on the occasion of modern times’ first Olympic games (1896) did Greece occupy world media centre-stage coverage as during the ongoing economic crisis, felt at national and international level. Not to mention the recent revival of Olympia (Athens 2004), that marked the unconditional surrender of athletism and “De Coubertin-ism” to the benefit of sponsors and business. At the same time, it cannot be denied that it was the occasion for the Greek government to successfully complete numerous infrastructural works otherwise unconceivable (Athens’ Underground, the Patrasso bridge, the Via Ignazia Highway, the new international airport). Indeed, after the Olympic games, the urgent need for structural and behavioural reforms surfaced within Greece’s economy.Greece’s skidding financial crisis is not the only black sheep in the Euro area. Indeed, other Countries are not better off: Portugal and Ireland, for instance, along with Spain, Italy and even Germany; as compared to stronger and more competitive economies. Maastricht parameters (stability, growth, national debt containment) have been a mirage to many, and the situation is unlikely to change. Black and white is the same in the Euro flock. Why then Greece? The sad truth must be said. No respectable state apparatus providing for high-quality services was established since the European Community membership agreements, ratified by Andrea Papandreou in 1981, followed by years of “rash” political and economic management of public affairs and community funds, unluckily typical of some Mediterranean – and non-Mediterranean – regions. Public health and education, and the public system as a whole, leak water everywhere. This wasn’t always the case. Indeed, squandering did take place in the past but the State (to kràtos) proved capable of mastering and balancing misgovernment. Thus the absence of the State, added to nepotism, practiced across all areas of Greek society, led to an indefensible situation (as compared to other EU member states), whereby Greece ranks first in Europe as relates to family bank loans. Alas, nothing new under the sun: the credit system, as speculative as ever, unfortunately found fertile grounds in a population which sought to improve its living standards, while it actually grew more and more indebted and poor.The problem isn’t even due to high public salaries, as is falsely being claimed. It is widely assumed that advantage has been taken of Athens’ fragile political moment – George Papandreou’s new government recently replaced Kramanlis’ premiership, – begun under good auspices but whose termination was marked by catastrophic governance – to strike a blow against the Euro area. And in order to assess economic “solidarity”, friends – or supposedly so -, often disappear in the moment of need. Greek population is being asked to undertake enormous efforts: plummeting salaries, skyrocketing prices and taxes, are set against the background of surging unemployment. Serious measures should be taken to combat tax evasion, which is plaguing Greek economy. But there the signs are discouraging, or maybe the measures taken until today are insufficient. Public administration’s squandering should be eliminated, whilst countering corruption and improving the financial environment, in order to promote small enterprise competitiveness. Indeed, available measures have been accepted by Europe and by the IMF. Another question deserves attention. While it’s true that for years running, regardless of the Governments’ political colours, Greece submitted “adjusted” balances and statistical data to Brussels in order to comply with Maastricht’s parameters, it is also true that Brussels never uttered a word and granted its validation. This hyper-bubble has now exploded. Why does the Commission’s criticism arrive only now, instead of accusing the European Central Bank, which until two weeks ago granted 6% interest-rate loans to Greece, while the very same day Portugal agreed to 3.5%? In conscience, reprimands should have been made earlier. The Commission, the ECB and a few EU governments probably stretched to the limit, as shown last week, when the European Council, on the proposal of the Commission and of the Central Bank (with the support of the MF, ready to intervene if necessary – which doesn’t appear to be the case) adopted a softer stand to this regard. Now Greece needs to prove that it is capable of “cleaning up its act”. It’s easier said than done. In Greece, an uncertain period of social unrest in politics and in the economy lies ahead. Our wish is that Greece’s ongoing crisis – and mostly, Athens/EU co-management – may serve to change the route and act as a warning to other countries, which risk falling into similar misadventures.