Repost: A view on the Greek Drama

In the current turbulent times of this Greek drama unfolding in front of our eyes there is this very human reaction on all of us to try and understand what is going on, or in this case rather how did it ended up here? We think and recall, very often we even discuss with our colleagues, but most of all we listen to the daily news at our favourite news channels; in my case BBC. From the very start it is of utmost importance to remind ourselves that current situation in Greece is a result of more than 20 years of sequence of events and taken decisions; first and foremost within Greece and by its government. Now, I am amazed to see and listen to various ‘experts’ from a number of public media who very confidently explain current crisis in less than a minute, without referring not even with a single sentence to this sequence of decisions mentioned earlier on. Obviously, in line with my own belief on the right of making decisions for themselves at all levels, then with it goes responsibilities for all those decisions if and when they go wrong.

Greece’s successive government have continuously borrowed on the market partly as result of market willingness to lend them money at relatively low interest, but mainly because they decided to do so themselves. Recalling market situation from few years ago, pre 2007 credit crisis, borrowing money cheaply was a very common feature within private and public sector, even when there was no fundamental economic reason; investing in projects which would provide higher returns than those needed to repay borrowed money. Reasoning was very simple; money is borrowed now, it is invested at some project which when needed will be easily refinanced with more borrowing from another source. As a strong supporter of capitalism and of borrowing to invest, in principle I cannot be against this sort of thinking; borrowing in order to keep enterprises going. This is as long as there is no pressurising in either parties involved in the transaction: the borrower or the lender. However, what is catastrophically wrong with this sort of thinking is that it relies on the idea that in the market there will be an unlimited supply of lenders and that they will be willing to lend money at the same interest rates. When this basic fact became clear, mainly to those making decisions, clearly it was too late.

To repeat, that successive Greek governments were not forced in borrowing money and it was their decision how that money, borrowed at some cost, will be spent. It was entirely their decision all the way. Now that it turns out that those decisions, or a substantial number of them, were wrong; well along with the principle of having the right of choice, now they have to face consequences. It is very understandable the frustration of the current Greek society in having to pay for decisions taken in the past. To make matters worse, those wrong decisions lasted too long.

States are not like individuals. States have to continue to honour their agreements even when the government which took those agreements is long gone and forgotten. This is the key point that every Greek citizen now has to understand. It was their governments who continuously made wrong decision, and now is time to pay up. Confident NO of the Greek people from the last referendum is a slap on the face to the rule of law which a basic condition of working democratic society but also responsibility towards state affairs above politics of the day. Their celebration of the result of that referendum was nothing else but politics of the day. An endorsement of their government who is preferring their extreme ideologies over long term interest of the Greek state and its people. The future of the Greek citizens does not lie opposite of European Union interest and certainly not against.

For a sociologist and an outside observer it is very interesting to view that all extreme views from all sides, left or right, in fact they have so much in common. They are very effective communicators, they that lead them are very effective in finding sides to blame and as many as possible, what they predicate sounds great in words but cannot work in practice, and all care so much for their ‘ordinary’ citizens. This sort of populist movements have failed in the past, irrespective of their ideological origins, and for as much as common logic can comprehend they will continue to fail in the future. In purpose I am emphasizing ‘common logic’ because we have to accept that in this whole mess there is also a degree of geopolitics at play too. It is clear that current Greek government is playing on the card of blackmail with an alliance with Russia. Now how clever it is it remains to be seen. A lot of it will have to do with other issues not linked with Greek crisis at all. But, on the one hand a member of NATO, an organisation willing to protect its positions in the light of Russian movements in Ukraine and on the other hand Turkey on its border with it’s very hawkish president; well, common logic tells that giving up on that idea before it is too late is the best decision.

However, we have the situation where Greeks have voted NO, although it is still unclear to me if they actually know what or who did they vote against. Does their NO vote means that they don’t want help, or that they don’t want to remain as part of Europe, or probably as many would like, they voted NO to repaying the debt that they incurred? At the end the outcome will be a well-known one; Greeks will have to suffer a range of cuts for some years to come.

However, in my opinion, since at stake are more than just crisis in one country, than Greek should be allowed to leave EU, in fact expelled if needed. Unfortunately, Greeks have taken upon themselves to be an example for others; ludicrous and irresponsible decision making will have to be repaid at some time and there is no escaping from it. Otherwise, if Greece can ‘get away with murder’, why Spain can’t, or Portugal, Ireland and……the worst of all, Italy?

Greece should leave EU, left on its own to raise support on the market, which they always would get although at probably….high 20s of a percentage point and that not in their own currency which by the way would be worthless anyway. One thing for sure would be that it’s brave and clever prime minister would have a lot to blame, but still ordinary citizens would face a lot of hardship. Therefore question is: do ordinary Greeks want to face hardship with the help of their friends or on their own and with very little left? Already it sounds as a good question, and I can hear its prime minister organising another referendum.