Sunday, August 22, 2010
Julian Assange and Daniel Ellsberg - Is history repreating itself?
Friday, August 20, 2010
The Memorandum of Economic and Financial Policies - Greece
Greeks angry over price hikes in wake of austerity package, originally uploaded by Teacher Dude's BBQ.
"Dear Messrs. Juncker, Rehn and Trichet,
In the attached update to the Memorandum of Economic and Financial Policies (MEFP) and the Memorandum of Understanding on Specific Economic Policy Conditionality of 3 May 2010, we describe the progress and further policy steps towards meeting the objectives of the economic program that is being supported by financial assistance provided by the euro-area Member States in the context of the loan facility agreement.
The policies of the government of Greece remain fully oriented toward securing fiscal sustainability, safeguarding the stability of the financial system, and boosting potential growth and competitiveness.
We have made a vigorous start with our economic program. The fiscal program is progressing well, financial policies are being strengthened, and structural policies are ahead of schedule in key aspects:
The end-June quantitative performance criteria have all been met, led by a strong implementation of the fiscal program. Not unexpectedly, it has proven difficult to fully control expenditures at some entities, and in anticipation of such problems we significantly under-executed budget implementation at the state level, thereby ensuring that targets for the general government were met. Going forward, we are redoubling our efforts to strengthen controls at all levels of government and are determined to continue to over-perform at the state level until such controls become fully effective.
Reflecting the weaknesses in expenditure controls at some entities, the indicative target on the non-accrual of domestic arrears has not been observed as the monitoring system for general government commitments, accounts payable, and arrears is still being developed and implemented. We commit to bringing these arrears down to zero by year-end, so that only a normal level of accounts payable is carried over into 2011.
While the financial system continues to feel the effects of tight liquidity, sentiment indicators are gradually beginning to improve, and policy progress has been made by establishing the Financial Stability Fund to backstop any capital needs that banks might have in the future owing to an expected increase in impaired loans as the
The government has made significant progress in structural reforms with far-reaching pension and labor market reforms being approved ahead of schedule. Parliament has also already adopted important budgetary reform and reforms of local government. Other major reforms that are at an advanced stage aim at liberalizing the trucking industry and restructuring the railroad system, while reforms of the energy sector, protected professions, the licensing and business regulatory framework and preparations for implementation of the services directive are gaining momentum, as foreseen in our program.
On this basis and the completion of the prior action, we request the disbursement of the second instalment of financial assistance by the euro-area Member States in the amount of EUR 6 500 million, in line with the loan facility agreement.
We believe that the policies set forth in the 3 May 2010 Letter of Intent, MEFP and MoU, and the attached updates, are adequate to achieve the objectives under the program. We stand ready to take any corrective actions that may become appropriate for this purpose as circumstances change. We will consult with the European Commission and the ECB, as well as with the IMF, on the adoption of any such actions and in advance of revisions to the policies contained in this letter.
We are copying this letter to Mr. Strauss-Kahn, Managing Director of the IMF."
ENOIKIAZETAI - FOR RENT
As the economic crisis in Greece bites ever deeper more and more of these signs are appearing in shop windows across Thessaloniki, Greece's second largest city. In some neighbourhoods closed down shops now outnumber those still in business.
Rapidly rising unemployment (up 50% in just one year), shrinking incomes and worry about what the future holds means that Greek families are now cutting back on spending in every category including basics such as groceries, a fact that many of my Greek friend swore blind would never happen no matter how bad things got.
With consumer confidence rock bottom and Greece's GDP set to drop 3.5% this year no wonder 86% of businesses are reporting cash flow problems. The Greek Chamber of Commerce is predicting the closure of 100,000 small enterprises before the year is out with the loss of yet more jobs.
Some parents, especially those on lower incomes are even cutting back on the amount they spend on their children's education, a situation that was almost inconceivable a few years back. The conventional wisdom was that Greek parents would make any sacrifice in order to help their son or daughter get the qualifications needed to get on in life.
The problem is that not only do families have far less disposable income than ever before but also there has been the realisation that the degrees and certificates that have been gained with so much sweat, toil and financial outlay are virtually worthless in terms of getting a decent job. The country s full of university graduates who cannot get work of any kind, let alone jobs that utilise their expensively acquired education.
It is exactly this generation that rose up in December 2008 and were at the forefront of the most violent and extensive civil disorder Greece has seen in a generation. However, the economic conditions then seem positively idyllic compared with the prospects now with one in three of 15-24 year olds jobless. No society, especially one as volatile as Greece can stand such levels of anger and hopelessness amongst its young for long.
Last time it was the killing of a 15 year old teens which caused a month long series of riots and confrontations in virtually every urban area nationwide and led to billions of euros worth of damage. One has to wonder how long it will be before another incident sets off the Greece's disaffected youth.
Thursday, August 19, 2010
Greece's richest yet to feel the heat of the economic crisis.
Sometimes there is such a wide divide between the way news about Greece is presented abroad that you might be forgiven for thinking that perhaps the country is like Slovenia, constantly being confused with Slovakia.
Today the BBC had a lead story that the Greece has fulfilled the conditions for the next installment of the massive 110 billion euro bailout package. To judge from the tone of the article all is well in Athens and now it is business as usual.
The fact that the imposition of the IMF/European Union/European Central Bank measures has crippled the economy seems little more than a perplexing footnote. The reality is that virtually every economic indicator is in the red. Unemployment has risen nearly 50% in just a year, 30 billion euros has been taken out of the country's banking system in the last 12 months and tourism revenue has dropped 25% since 2008.
The Greek Chamber of Commerce is also predicting that over 86% of business are facing liquidity problems and that 100,000 are set to close by the end of the year so further hampering government efforts to raise tax revenue in order to reduce the massive deficit.
However, unable or unwilling to take on Greece's wealthiest prime minister Giorgos Papandreou has followed the safe path and hiked up VAT twice in th last few months and pushed up fuel prices over 70% since taking power last September. Such tactics are a stark admission of how ineffectual the Greek state is in taxing the country rich directly. As a result the burden of the sacrifices being demanded is falling disproportionately on the shoulders of theworking and middle class.
At first glance such measures could hardly be considered an easy option for any democratically elected government but the fact that PASOK would rather go head to head with millions of bitterly disappointed voters than challenge the wealth and power of the country's richest inhabitants speaks volumes about how much influence they wield in modern Greece.
Sensing the growing outrage over falling wages, rising unemployment and the huge tax increases PASOK is mounting a propoganda campaign to convince the electorate that the better off are also being called up to pull their weight. Day after day the state run channels, along with pro government newpapers and TV stations are reporting raids on clubs and bars evading tax.
The problem is that most Greek have seen such campaigns so often that they are very cynical about their supposed results. Most believe that even if businesses are caught a quick word/bribe to the relevent official means that the case will quietly be dropped once the glare of publicity has moved on.
On the other hand Greece has pointedly ignored the opportunities for clawing back lost revenue squirrelled away in Swiss bank accounts by refusing to act on information that the French and Italian authorities were quick to utilise in their crack down on tax evasion.
Apparently not one of the 1000 plus Greek customers of the Swiss branch of HSBC was worth investigating. In contrast the Italian tax authorities found several cases of wrong doing among the 5728 Italian individuals and companies with accounts.
Whether SDOE (Greek IRS) was right in making such a call is less important than the message it has sent to the public that while they are being crushed by the current austerity program those with access to wealth are not feeling much pain at all. Protected by their off shore companies and close connections with those in power, Greece's elite are quite happy to ride out this crisis in the comfort of their villas and yachts.
The sad irony is that the measure to raise state revenues are not working the, more Athens raises VAT and other indirect forms of taxation the greater the gap is between the amount collected and that needed. Fears of unemployment, falling incomes and rising prices of basic goods such as bread and power means that people have far less disposable income and what money they do have left over is being hoarded in case of future emergencies. With the economy entering a graveyard cycle it is becoming harder and harder to believe that Greece will be able to halt the decline without a radical reapprisal of its current economic priorities.
Wednesday, August 18, 2010
The A21 Campaign - Human trafficking in Greece
You can also follow the A21 campaign on Twitter and on Facebook Cause and check out their 21 different ways to help.
Saturday, August 14, 2010
Friday, August 13, 2010
Listen to your leaders
As you've probably noticed I've been doing a lot of work on remixing various posters from the past. This is no exception as it was originally a silk screen print created by students in Paris in May 1968 and entitled Retour A La Normale (Back to normal). However, since I have no real drawing skills nor access to any kind of printing device I decided just to produce my own digitally updated version using GIMP (which is an open source version of Photoshop) and my netbook just to see if I could come up with a credible result.
Well, that and the fact that I'm bored stuck in the city in the middle of a heat wave and sitting in an air conditioned cafe doing anything has to be preferable to sitting at home sweating myself into a feverish frenzy.
Sometimes I go through phases when I do not feel like taking photographs or there are no subjects that really grab my attention. This is one of those times and rather than do nothing I usually focus on some other interest such as writing or designing. The good news is that by doing something different for a change I usually manage to pick up some news skills which often prove useful later on in ways I never expected. For example by working on images such as the one above I have to overcome a number of techincal problems which can be frustrating at times yet when I have overcome them they open up new avenues with my photography.
Usually, I get inspiration from something I've read or heard about in the news, often something that has enraged or upset me and then the germ of an idea is born which may take days or weeks to develop into something I can actually visualise. Other times it just appears in amtter of minutes, there is no way of telling.
Wednesday, August 11, 2010
The world gets a new super hero - IMF Man
Step aside Superman, give it up Spiderman, Batman, time to hang up the cape. There is a new kid on the block - IMF Man.
Able to destroy large economies with a single leap in interest rates, IMF Man is here is here to save the world from depravity and unwarranted public spending. See him crush trade unions with the swish of a pen and bail out out the entire banking system single - handed.
Bitten by a radioactive coackroach when young mild mannered Dominque Strauss - Kahn is a mild mannered finance specialist by day but by night he is a neo-liberal super hero fighting the evils of deficit spending wherever they rear their ugly head.
Targeting benefit thieves
If you suspect benefit or tax fraud please contact your local Coalition of Resistance representative.
Tuesday, August 10, 2010
Live your myth in Greece
Back in the day when I could still afford to travel to the Greek islands I would often read and hear stories about how tavernas and restaurants would have two different sets of menus, one with prices for foreign tourists and another set for Greek visitors. The owners would use the fact that many holidaymakers from abroad found it difficult to get used to paying in thousands of drachmas rather than tens of francs or marks.
It also reflected the fact that then the gap in earnings bewteen the average Greek and northern European was enormous, something that came as a shock when I first came to Greece and realised that the summer job I had had as a lowly clerk paid more than a fully qualified doctor was earning here.
With the passage of time the gap in earnings between the groups has narrowed, though it should be added not disappeared and yet strangely the same system of differential pricing has become inverted with Greeks shelling out far more for their holidays than tourists from other countries. A friend of mine told me that she could save money if she took a charter flight to London and then Rhodes than book a holiday direct via a travel agent here in Thessaloniki.
Unable to squeeze more money from the tour operators hoteliers charge outrageous rates to their fellow countrymen and women, hoping to get the same kinds of profits as in the past, even though the local holiday season has shrunk dramatically as the cost of vacations has risen exponentially. Now the Greek family that spends two weeks at a hotel or pension is the exception rather than the rule. This does not mean that people are not going on holiday but rather the nature of holiday making is changing with more and more people choosing to stay with family or friends or taking a week off rather than the traditional two or three.
There are a number of reasons for this and first and foremost is the current economic crisis which has forced Greeks to think very carefully about how and where they spend their money. With the threat of job losses hanging over everyone's head many are choosing not to spend money unless absolutely necessary.
The Greek trade union congress, GSEE is talking about a million out of work within the year, or approximately one in five of the work force nationwide. Not than unemployment is ever evenly spread and here in the north of Greece that figures is set to be much higher, especially in the towns and cities hit by loss of textile and other manufacturing jobs to other Balkan states and, of course China.
On the other hand tourism in Greece has been in a downward spiral for a number of years weighed down by rising prices which have deterred both foreign and domestic visitors from staying longer. Even those visitors who can take advantage of cheap flights and accomodation are often shocked by the prices of eating out and entertainment which are far greater than at home. How many residents of Dusseldorf, Dieppe or Doncaster think that that 4 euros is a reasonable prices for a cup of instant coffee is open to debate. This is a far cry from the 80's and 90's when even the inflated prices charged in the tourist hot spots were still comparatively cheap for northern europeans.
Chatting with friends recently returned from the island of Kefalonia they told stories of shocked vistors amazed that despite the fact that Greece is in the middle of its worst financial crisis in a generation prices were still so high? When people have no money are they supposed to drop? Apparently not. Adam Smith is obviously not required reading on the beach.
Yet when you talk to the owners of these places they are adamant that the only way they can survive is by charging more and more, so making up in profit margin what they are losing in sales volume. And so the vicious cycle goes on with the holiday season growing ever shorter and prices ever higher as those involved in the tourist industry try to squeeze more and more money out of visitors in the quickest time possible.
Monday, August 09, 2010
Drink for Queen and Country
Foreign and Commonwealth Office claim full disclosure of £864,000 collection could 'influence the wine market'
Saturday, August 07, 2010
Happy birthday Lydia
She's now 11. Or 12 as they sometimes calculate it in Greek. I can still remember the first time I picked her up in my arms, terrified that I would break her or drop through fright.
Friday, August 06, 2010
Blair must be arrested by John Pilger
"Having helped destroy other nations far away, our former prime minister — “peace envoy” to the Middle East — is now free to profit from the useful contacts he made while working as a “servant of the people.
Tony Blair must be prosecuted, not indulged like Peter Mandelson. Both have produced self-serving memoirs for which they have been paid fortunes; Blair's, which have earned him a £4.6m advance, will appear next month.
Now consider the Proceeds of Crime Act. Blair conspired in and executed an unprovoked war of aggression against a defenceless country, of a kind the Nuremberg judges in 1946 described as the "paramount war crime". This has caused, according to scholarly studies, the deaths of more than a million people, a figure that exceeds the Fordham University estimate of deaths in the Rwandan genocide.”"
The Greek economic crisis's 600lb gorilla in the room
IMF - What "Internal Devaluation" really means for Greece., originally uploaded by Teacher Dude's BBQ.
I'm sure than you have that old medical joke, "the operation was a success but the the patient died" a thousand times but I can't help but recall it when I see on the state - run ET1 and NET news bulletins reports of how quietly optimistic the IMF/EU/ECB are about the progress Athens has been making in implementing the economic reforms needed before they approve the latest installment of the bailout package.
NB the picture is NOT real but a piece of photoshopped fun. Just a reminder for those who had their sense of humour removed instead of tonsils when young.
Wednesday, August 04, 2010
Tuesday, August 03, 2010
Papandreou's perfect storm gains strength

Reading some of the foreign media accounts you could be forgiven for thinking that the Greece's embattled prime minister, Giorgos Papandreou has weathered the worst of the storm caused by his attempts to bring in the country's ballooning public debt under control. The mass public protests that rocked Athens and other Greek cities throughout May have stopped, the truck drivers' unions have called off their strike and the PASOK government is rapidly pushing through the changes being demanded by the IMF/EU/ECB troika in return for the next installment of its bailout package.
Monday, August 02, 2010
Laughing all the way to the bank
I took this picture of Giorgos Papandreou just after a PASOK campaign rally in Thessaloniki last year during the Greek parliamentary elections.
Instead of adoring party supporters the next time he appears in the city in September he will most probably be acompanied by 5 - 10,000 extra police officers to ensure that he and members of his cabinet are not attacked by the very people who voted for him just one year ago.
IMF Chaos and poverty world tour T-shirt
Sunday, August 01, 2010
Welcome to the Afghan War Diaries
At long last the Afghan War Diaries has brought to the attention of those countries that have forces stationed in Afghanistan what exactly are the real consequences of waging a nine year war. We no longer have the fig leaf of ignorance to hide the fact that we who live and vote in these nations also are culpable in the deaths of hundreds of thousands, the majority of whom were guilty of nothing more than being poor and powerless.
For years we have all placidly sat by and lapped up the white washed "news", neatly sanitised for our own protection that has come out of Afghanistan. Murderous attacks on unarmed villagers have regularly been mutated into glorious battles between the forces of democracy and supporters of a barbarous ideology whose way of life threatens us all.
It's hard not to see the echo of high imperial thinking in such rhetoric, especially when it comes from the UK press whose ancestors were quite happy to forgive any "mistakes" by the guardians of Empire, safe in the knowledge that The gift of Civilisation to the heathen was worth the sacrifice of lives in the long run.
On the other side of the Atlantic the US media has been not just willing but positively enthusiastic about "supporting out troops" in their war on darkness, happy to burnish the military's view that the best way to save the people of Afghanistan is slaughter them in ever larger numbers. The lessons of Vietnam have been condemned the dustbin of history, seemingly no more relevent to today's world than the speeches of Cicero or buggy cabs.
For years publications such as Time have been running stories on how US soldiers have run mission after mission to thwart insurgents and win the hearts and minds of locals who wish to live in peace. The message being that any group that opposes such goals has to, be definition be either fanatical or evil, preferably both. So stories of widespread abuse of human rights, summary executions, death squads and thousands of deaths "by mistake" cannot be made part of the media landscape, they make no sense and so contradict the perceived consensus that they are either ignored or downgraded in importance.
One has has just to look at these two magazine covers to understand how little has changed in the way the majority of the US mainstream media deals with conflicts that involve their own soldiers. Despite a gulf of nearly four decades the media has learnt little and once again is more than willing to acquiesce in any act of moral appeasement in the name of patrotism and access.
Wednesday, July 28, 2010
Greek truckers' strike bites harder
The latest round of talks this morning between leaders of Greece's truck drivers associations and the government failed to find common ground and so the industrial action which is likely to see the country ground to a halt in the next few days is set to continue.
The dispute was the result of attempts by Athens to liberalise Greece's transport market by opening up the trucking profession to everyone with a heavy goods licence and so doing away with the existing permit system which has meant that like taxis, only those registered can operate.
On the one hand the opening up the profession is part of the IMF/EU/ECB process of making Greek products more competetive by reducing transport costs however, drivers associations argue that the sudden implementation of the system means that many of their members stand to lose hundreds of thousands of euros spent obtaining an operating licence.
Instead of petering out strike actions are set to escalate as Greek international truck drivers associations are also preparing to join the strike so threatening imports and exports to other EU countries.
The Greek media has been speculating on whether the government will be forced to bring in the army to make sure the country does not run out of fuel and other basic goods.
Tuesday, July 27, 2010
Monday, July 26, 2010
Life in a Day - Drama, action, turmoil but no pictures
Saturday, July 24, 2010
Stress test claims one Greek bank
The much hyped stress test of Europe's banking system is intended to ally fears in the world money markets over the ability of the continent's financial system to weather a meltdown. In the end just seven of the 91 banks failed to make the mark, five Spanish, one German and one Greek.
Athens is claiming this as proof of the rude health of Greece's banking institution and the state run TV channels are running the story as if it was a 5-1 victory in the World Cup. However, by strange coincidence the one institution that failed the test is the state controlled ATE (Agricultural Bank of Greece) which is also responsible for hundreds of million in loans to the country's two largest parties. The ruling PASOK party lead by Giorgos Papandreou owes 98,6 million euros whereas the opposition New Democracy party which was in power till last September has debts of 105 million.
In addition the parties also owe sizeable amounts to Piraeus bank which narrowly escaped the same fate as ATE. It seems strange that the two banks which fared worse in the stress test are the one so intimately associated with parties in government.
A mind more suspicious than my own might come to the conclusion that ATE and perhaps Piraeus have been used as a private piggy bank by those in power and that much of ATE's present weakness comes from the Greek State's chronic inability to maintain a distinction between the needs of the Party (whatever ideological colours it purports to fly) and the needs of the country.
Friday, July 23, 2010
Taking a break
I though I would take time out from the usual stories of doom and gloom and write about something more pleasant. Since, believe it or not the life goes on much as it usually does here in Greece despite all that you may read on this blog or in the newspapers. people work, laugh, fall in love have fun and the like.
Me and Lydia went to a concert a few days ago in the centre of Thessaloniki organised by a soft - drinks company. It was an example of naked self - promotion but despite that I have to admit it was fun. Being surrounded by so many people have such a great time was infectious and any excuse to forget our troubles is always welcome. Lydia was enthralled by it all and along with half the audience decided to record the event on her mobile. I swear Aristotelous square was a sea of cameras and cell phones.
In addition I finally learnt to do something that I have been meaning to get round to for ages and so with some trepidation I set about learning how to make bread. Much to my surprise the whole procedure was a lot less demanding than I had imagined. Buoyed by success with my first attempt I decided to try my luck again, this time with Lydia's assistance. And once again something emerged from the oven that not only resembled a loaf of bread but also tasted a lot like it as well.
Tuesday, July 20, 2010
Death of Greek journalist Sokratis Gkiolias unleashes wave of rumours and speculation in local media
Monday, July 19, 2010
The Guardian interview with Giorgos Papandreou - life style puff piece?
"He cuts through the water with agility and speed." gushes Helena Smith, the Guardian's Athens corresponent, who then goes on to describe Greece's embatted prime minister as "statuesque" and later swoons over his "Olympian stamina". Guys, get a room.
This kind of journalism was be hilarious if the story behind it was not so tragic and didn't involved the suffering of so many people. Yet, the Guardian's interview with Papndreou is yet another example of how shallow the foreign media's analysis of what is happening in Greece really is.
We find out from the hard hitting piece that, "you have to make tough decisions in politics" and that "as long as I feel I am doing what I think is right and just for my country, for the Greek people, that is enough for me." While Smith does mention the enormous problems that Greece faces, many the result of the policies adopted by Papandreou's own PASOK party when it was in power she allows many claims by the prime minister to go unchallenged.
For example Papandreou insists that he was unaware of the true extent of Greece's financial woes before taking power in September 2009, a claim that the governor of the Bank of Greece refuted in an interview with the investigative journalism TV show "Neoi Fakeloi" (New Folders) which aired on the Skai TV channel May 2010. According to Giorgos Pavopoulos both the former and present prime minister were told during the national election campaign that the country's national debt was rising fast and likely to reach 12% before the end of 2009.
On the other hand Papandreou is allowed to repeat without challenge the oft heard claims that his government will help mobilise youth to change the country through the setting up of new businesses, especially those connected with renewable sources of energy and "green" initatives. While the sentiments are admirable no details are given about such programs and how they are to be funded when money for services as basic as hospital supplies are drying up. Nor does it seem to be having effect on the growing problem of unemployment which is hitting young Greeks hardest of all with over 30% without work, a figure set to rise still further as the economy continues to shrink.
At no time is the fact that many economists belive that the current IMF/EU/ECB bailout plan is doomed to failure according to many of the world's leading economists who think that the austerity package is most likely to lead to a long term depression reminiscent of 1929. Instead the government's tired old line that the there are no alternatives to the measures is repeated and that the economy will be "reinvigorated". No wonder the interview was warmly and repeatedly quoted on the state run ERT TV news.What we see is yet another example of how "access journalism" reduces reporters to little more than stenographers and cheer leaders for those in power and that by making so many compromises to gain access to their subject the whole point of a newspaper interview is subverted and allowed to become little more than a life style puff piece. The fact it makes its appearance in a newspaper as serious as the Guardian makes it all the more depressing.
Greek journalist executed on own doorstep
The fact that Gkiolias was associated, at least according to much of the Greek press with the controversial Troktiko blog has sent the Greek language blogosphere into a frenzy of speculation over who is responsible for the murder which bears all the hallmarks of a gangland execution. According to the internet based news site in.gr the attack has drawn the attentions of Greece's anti-terrorist agency whilst contributers to Troktiko hint that those behind the killing have connections with elements within the State or "parakratikoi" as they are called in Greek.
Saturday, July 17, 2010
Greece - looking beyond the statistics

As Greeece sinks more and more deeply into economic recession one of the most frustrating aspects of the crisis is the lack of quality coverage from the foreign press. Whilst most Greeks have little of no confidence in the veracity of local media reporting, they do not expect the same kind of low grade journalism from organisations such as the BBC or the Economist.
Friday, July 16, 2010
Thursday, July 15, 2010
Wednesday, July 14, 2010
Tuesday, July 13, 2010
Thessaloniki newspaper victim of arson attack
No group has claimed responsibility for the attack but suspicion has fallen upon far right groups who have been known to use such tactics in the past.
Saturday, July 10, 2010
Life in A Day
Friday, July 09, 2010
Greek general strike - Thessaloniki 8th July 2010
About 3-4000 protesters marched through the centre of Thessaloniki , Greece today to demonstrate against government plans to radically reduce pensions and social benefits.
Wednesday, July 07, 2010
Critical Mass Ride starts with a water fight
The guys with the Critical Mass Ride decided to have some fun while promoting the idea of cycling as an alternative to the internal combustion engine in Thessaloniki by having a water fight. So instead of duelling pistols at dawn it was water pistols at sunset.
It's good to remember that despite all the doom and gloom caused by the economic crisis life goes on, people have fun, joke, laugh, fall in love and have babies and do all the things that the rest of the world does no matter how bleak things seem to get.
Monday, July 05, 2010
Give me debt or give me death
Internal devaluation is just a polite way of saying screw the poor. If you think that the crisis in Greece is nothing to do with you think again.
The Greeks are fighting the first battle in war against those on lower incomes that will, sooner or later involve the rest of the Europe Union. One can only hope that these policies which promise to repeal hard won social reforms are defeated on the shores of the Aegeon.
IMF/EU/ECB - Resistance is anything but futile
One of the worst aspects of the current economic crisis here in Greece is the way it has sucked the hope out of so many people's lives. The current austerity measures offer nothing in the way of hope for the millions of Greeks on lower incomes whose backs are already up against the wall. This sense of dispair limited to any one group or region but rather has spread like some infectious disease throughout the social spectrum.
Talking to friends the conversation always seems to find its way round to the financial mess the country finds itself in. Everyone I know is worried about the future since the massive economic dislocation we are all going through seems to offer nothing but years of poverty and deprivation, negating decades of hard won progress.
For the young the sense of a future deferred, cancelled, even is strongest. What do they have to look forward to? Unemployment, low wage dead end jobs, a life spent living with their parents? After so many years of study and struggle they are coming to the realisation that much of what they were working towards has disappeared and nothing is being offered to take its place.
Prime minister Giorgos Papandreou may talk about the light at the end of the tunnel but few believe his words as they are the same broken promises that the Greek political class have been manking for years. The same wooden language expressing ideas that no one listens to anymore (not helped by the fact that Papandreou is a monumentally awful public speaker).
The fact is that that the recently elected PASOK party has absolutely no popular mandate for the changes they are making to pension schemes and wages since none of the recent measures were in their pre-election manifesto. Papandreou insists that his party had no idea of the size of the deficit they were inheriting on taking power last year (a contention vehermently dened by the head of the Bank of Greece who says that the head of the opposition knew of the massive overshot in public spending figures). Yet it is a measure of the collapse in public trust in the present political system that few are willing to believe him.
Lacking a mandate the leadership of the PASOK party has resorted to fear and intimidation both within and outside parliament to push through legisaltion demanded by the IMF/EU/EB troika. Any MP refusing to follow the party line faces immediate dismissal form the party whilst outside parliament the presence of riot police has become a permanent fixture of demonstrations of any size.
However, this is just the beginning, the real battles lie ahead of us in September when Greek politics traditionally revive after the lethargy of a long, hot summer. Also the effects of the first wave of cuts in wages, rising unemployment and the fall in income from tourism are likely to combine to form a perfect poltical storm. In the face of such massive unrest it is hard to see how Papadreou is going to maintain party discipline amongst PASOK backbenchers already deeply upset about the route the party is taking. Likewise the party base is unhappy with being identified with such wildly unpopular policies.
In addition there is every likelyhood that the Greece will fail to find enough revenue to fulfill Troika (IMF/EU/ECB) targets and will be forced to borrow even more to pay the bills. Already a second rise in VAT has been imposed on an economy struggling to become competitive, a clear indication that government measures to increase revenue are not proving as effective as Papandreou promised.
With a spiralling debt, massive drop in economic activity and steadily rising unemployment how long is it before Athens is forced to renegotiates its debt load?
Thursday, July 01, 2010
Repeat after me: You have no choice
This is the message that the Greek media have been bombarding the country with ever since the PASOK government went cap in hand to the IMF, EU and ECB for a bailout loan that would, it was said save the country from bankruptcy.
Whilst the strict terms under which the the money is being spent may help French and German bankers sleep better at nights the cost of "internal devaluation" have wrecked havoc with those Greeks at the bottom of the ladder. Hit by a triple whammy of large price hikes caused by two increases in VAT, cuts in income and massive rise in unemployment many are struggling to survive, cutting spending on even basic such as groceries to the bone.
This in turn is further deepening the crisis by hammering the country's retail sector which has responded by shedding jobs and so the vicious circle creaks on.Even going to Greece's famed beaches has become a luxury beyond the reach of many as petrol has risen by nearly 60% in less than a year.
The government say we have no choice, there are no alternatives and the measures, as painful as they are are necessary to restore Greece to financial health. However, in the absence of any kind of coherent plan for economic growth the present policy of cutting costs and raising more government revenue through indirect taxation seems a recipe for disaster and is likely to doom the country to a long period of stagnation and poverty the likes of which modern Greece has not experienced in 50 years.
Summer is not traditionally a period of intense political activity here but come September Prime minister Giorgos Papandreou is likely to be faced with an electorate at the end of their tether and outraged by a political system that has been marked by both massive corruption and unbridled incompetence. At that stage even his supporters in the supine national media are not going to be in a position to help him out of the hole he has dug for himself, his party and the country.
