Greece is a wonderful country. We
visited a couple of summers ago and we met helpful and generous men and women
who were happy to show off their country and culture. However, in a crisis not seen since the
collapse of the military junta in 1974, Greece has lived on a tipping point and
today, they went to the polls where if public opinion is to be believed, the
radical leftist party Syriza will win a convincing victory. Dangers lie on what such a victory would mean
for Greece, austerity measures and Europe as a whole.
Throughout European capitals, there are concerns about Syriza and its charismatic
leader, Alexis Tsipras. He is seeking to
unseat Prime Minister Antonis Samaras, he who seeks to continue the austerity
measures placed upon Greece to pay back its debt. Greece’s public debt is 176% of the gross
domestic product. This is a shocking
number but in recent months, Greece has slowly climbed out of its recession,
unemployment is down and by most measures, the birthplace of democracy is on
the rise. However, it will take years to
fully recover and Mr. Tsipras and his populist rhetoric is called for a massive
restructuring of the European binds.
When speaking of the Europeans in the aftermath of World War One, who
sought a way out of war debt, U.S. President Calvin Coolidge said, “Well, they
hired the money, didn’t they?” With the
shoe on the other foot, European leaders must be asking themselves the same
thing because Mr. Tsipras has declared that Greece will not continue the
austerity measures and does not feel beholden to Europe’s demand. Strangely, at the same time, he also declares
that Greece will not leave the euro.
Well, Greeks might want to dust off their old collection of drachmas
because that will not be Greece’s decision.
Mr. Tsipras might also be threatening the much-needed $7b in aid they
are set to receive from the money lenders.
As I’ve written before, Greece has institutionalized and entrenched
traits of corruption and incompetent economic policies. The corruption spans the spectrum from the
highest Greek politician to the average citizen who does not trust their
government; therefore they don’t pay their taxes. This is a nation in the throes of withdrawal
symptoms from previous, reckless behavior.
Mr. Tsipras has promised to tone down his earlier rhetoric which railed
against the International Monetary Fund, the European Union and its central
bank who has demanded Greece’s recent economic policy. However, words said or not said mean nothing
if actions remain true to his nature.
Alexis Tsipras assured victory leaves only the question as to whether
Syriza will win and outright majority or not.
If not, Mr. Tsipras will have to figure out a coalition that will cross
the Rubicon with him. That may not be
that easy. European leaders, primarily
German Chancellor Angela Merkel and French President Francois Holland are
gearing for a confrontation that could greatly compromise the euro and the
current European economic structure.
Much like Greece, Europe and the EU are on the verge of dealing with the
consequences of its past actions. On a
euro high, the EU were quick to draw in the Mediterranean states over a decade
ago.
As I finish this article, it appears that indeed the Syriza has won its
expectant victory and the Greek people have turned their back on the success of
the Samaras government. Mr. Tsipras is
about to confront the reality of Greece’s situation. If he can look into the abyss and still pick
a fight with the continent, the next few years could have a reverberation that
will shake Europe and the world. Many in
the U.S. may not have Greece atop of mind but the governmental actions on that
beautiful peninsula will make an impact.
One can only hope that no matter what happens, lessons are learned and
mistakes are not repeated.
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