I have mixed feelings regarding the manner both the Government and the Opposition have been discussing and looking at the Greek crisis. On the one hand, I cannot but agree with the way, Finance Minister, Prof. Edward Scicluna is reacting to the Greek Debt crisis and in speaking out so clearly. The Government has been correct in demanding that Greece starts paying off its debts and Scicluna did not mince words. His skepticism concerning Greece’s disposition to pay back its debt is revealing to be true.
At the same time, one needs to understand that the money given by the IMF and the European States did not go to safeguard the Greek pensions but to pay the private German and French Banks that were speculating on the Greek debt by buying Greek bonds to make hefty profits. When Greece could not pay back because of the speculation of these private banks, the European Union and IMF stepped in to safeguard these banks and not the Greek people.
No doubt those who are going to be hit hard by these types of tactics are the pensioners and the workers who, normally, are the individuals who pay their taxes to the last penny. That times are going to be tough for these categories in Greek society is a fact. It should be noted that the word ‘agony’ originated in Ancient Greece and the Greeks are experiencing its real meaning, but this category of people was not afraid to voice its anger. They took Giuseppe Mazzini’s tip, when more than hundred fifty years ago wrote that the workers had nothing to lose except their fear. In their majority, the Greek voters shed their fears, resisted European pressure and voted “no”.
Ironically, this crisis is bringing together Marxists and Liberal critics on the same line of thought. Both are arguing that our capitalist system requires debt to move forward for it to thrive. Debt is the bloodline of our economy. The Marxists would retort that without debt, there is no capitalist economy. Without debt, the Liberals would reply, there would be no economic growth.
After this vote, where the Greek people have rejected the austerity measures, the future of Greece is uncertain. Many are interpreting this that Greece would have to opt out of the Euro, which can also mean that Greece will have to exit from the European Union. The final result will be that Greece will be left on her own.
I will not make nostalgic discourses about Greece’s historical contributions to the development of democracy in the West. All know that the concept of democracy was born in Ancient Athens. If Greece wants to continue to enjoy the benefits of capitalism, it needs to honour its debts. There is no alternative system, unless Tsipras is not really thinking of reverting to the defunct Communist system or wishes to move closer to Russia. But there is the third way.
I strongly believe that it is in the interest of Greece to remain in this Union, if it wants to continue benefiting from the advantages that such a union brought to Europe. I have no doubt that many in Greece recognize that thanks to the European Union, it is the first time in European history that its Union members have not been at war with each other for such a long period of time.
However, the manner in which European politicians are addressing this issue relays that they do not fully believe in the concept of European solidarity. The Socialist Schultz addressed the Greeks more as a right-winger than a leftist expressing unity. Ironically, many right-wingers, who want to put an end to the European experiment are behind Tsipras and his radical Left. The scenario is not far more different to hundred years ago, when the entire liberal system in Europe came crushing down with the First World War.
I was in Athens, in 1997, when the decision was taken to allow Greece to join the Euro. I remember that there was fear in Greece that the country would not make it due to its bad finances. But still, it made it. Already in 1997, it was clear among many Athenians that their success to join the Euro was not due to their economic or financial performance but was purely a political decision. In my opinion, this explains why many in Greece are worried today that they will lose what they had struggled to achieve if Greece exits from the European monetary system and returns to the drachma.
Despite these fears, the Greeks are showing that the problem today is not Greece or the euro. The real problem is a political one: whether Europe will remain a political concept or whether Europe wants the disintegration of the European dream in favour of a new political system. I am sure that Europe is charting new grounds here, and this crisis cannot be compared with that of Spain or Ireland. The Spanish and Irish crisis remained one on the economic and financial front. The Greek crisis is verging onto the political front. With their vote, the Greeks have challenged the power of European bankers. With their vote, the Greeks have divided the European citizens, with those in favour of the Greeks and those against them.
This is why I believe that European politicians need to shed the concept of the nation state that was formed in the nineteenth century and whose roots are in more distant centuries. Unfortunately, many European politicians still talk in terms of the nation state.
If this does not take place, the real winner is Germany and its Chancellor Angela Merkel. This is why I strongly believe that for the first time, we have a crisis where finance and economy have given way to politics.
In this whole new scenario, I wish to state that Joseph Muscat is succeeding in making Malta’s voice heard. Our small island is becoming also a protagonist in this political battle. What our Prime Minister is saying is being taken into account by the International news. The statement of Dr. Muscat that Greece was ready to suspend the referendum if negotiations were reopened made the international news. I don’t know whether he was divulging secrets or acting as international interlocutor. I believe that the second is the real cause. Muscat’s affirmation came after the German Chancellor, Angela Merkel, closed the doors to Greece. At the same time, I feel that Joseph Muscat is too pro-Merkel.
On its part, the Opposition is right to support Government on this point, though, like Muscat, the Leader of the Opposition is speaking more in terms of our National interest to safeguard the Maltese State, than in terms of Europe as one community.
One needs to remember that it is thanks to the European Union that the age of dictators of both left or right matrix is over. This Union has helped the European continent, which was destined to historical irrelevance, to remain a main protagonist on the world stage. The current class of European bureaucrats and politicians is succeeding in undoing all this work. Therefore, this no vote should be taken as an alarm call across Europe. It is showing European bureaucrats that the world stage is not only made up of bankers and politicians but of the common mortals who may sometimes be also wiser.