When the Greek crisis first came to the fore, European leaders, including the Maltese Prime Minister, urged the general public to be understanding, and to offer solidarity.
As time went by, Ireland crashed and was followed by Portugal. Spain has been teetering on the edge for some time now and serious doubts are being raised about Italy’s phenomenal public debt. Since then, it became apparent that Greece had done nowhere near enough in terms of implementation of austerity measures to make up for years of fraud, theft and lies.
Greece has had to resort to another bailout, but this time, Europe has decided that the decision on whether to do so hinges on whether Greek Prime Minister George Papandreou can muster enough support in the Greek Parliament to implement another raft of austerity measures.
Not surprisingly, countries such as Germany, Finland, the Netherlands and Malta, are irked by the idea of giving Greece another bailout in the face of utter failure to do anything that can bring their flagging economy back into line in terms of growth and deficit reduction.
From the launch of the euro, many doubted that it could survive as a currency without political union. It seems apparent that this is the case. Some, on the other hand, argue that there are too many cultural and political differences for this to ever happen.
But we argue, look at Malta. Malta is the southern periphery of Europe and a eurozone member. Granted, the economy is not firing on all cylinders to massive growth – our GDP per capita contribution shows that we are still off the mainstream in that respect. But finances are relatively sound, the deficit is being brought close to the 3% Maastricht benchmark and we are also registering growth. We are, in effect, a contradiction in terms of stereotype. We are a ‘lazy southern European country’, yet our finances are among the best in the bloc.
The idea of a European Union Finance Ministry, with sweeping powers over the eurozone’s members has now been given clout, as proposed by the Dutch Central Bank Governor. This would mean that countries such as Greece, Spain and Portugal would be forced to adopt certain measures in terms of adhering to public spending directives, as well as taxation. Brussels will be looked at as some form of Imperialist hangover colonialist tribute demander. But who can they blame but themselves?
On the other hand, though, why should Malta, Finland and Germany suddenly become answerable to a Brussels Finance Ministry when finances have been kept in sound order. This, of course, is assuming that they are sound and that books have not been cooked as they were for years by the Karamanlis administration in Athens.
Whatever the case may be, resentment is brewing. The people of those countries concerned have been protesting daily. The people in countries which have been prudent are irked by what they see as outright handouts. Also, governments are now losing their patience with Greece and its ilk. Let us not forget that there are other issues which are of paramount importance. The European Central Bank holds a large swathe of Greek Government bonds. If the Greek economy collapses, then the ECB will need a massive capital injection – who will pay for that? Also, the Chinese are buying up European debt like there is no tomorrow, outstripping their investment in US dollars. Would they be as forgiving as European nations when the day comes to settle accounts? Time will tell. Greece is beyond redemption and very pertinent questions are being asked of Portugal, Ireland, Spain and now; Italy. One by one, they will all fall… they are too far gone.