European Central Bank chief Mario Draghi rubber stamped this latest bail out after speaking with Greek non-elected interim leader Mr Papademos. He told Mr Draghi that all parties in the Greek government had now agreed to the measures demanded by the EU. What about the Greek people? Those who will live with the implications of these measures on a daily basis?
Whilst the EU is not a charity it is supposed to be a community.
News of the deal had an instant positive effect on the stock market. Yes many will make money on the ills of Greece and its people. There will now be some alternative cuts to those which had been rejected last year. These will include a 22% reduction in the minimum wage and a total of 150,000 job cuts in the public sector, of which 15,000 will go this year. On the face of it this looks as if there will be one section of Greek community being hard hit and that will be the poorest. Correct me if I am wrong. Those who run countries, banks, big business and the like will prosper. Those in effect who were responsible for the mess in the first place. Pensions are in line for a 15% cut which may now be increased. Yes hit the elderly too.
Papademos and his measures are supported by the far right of Greece. It is noted thati n times of cirisis in Europe the far right tend to rise to the top before all hell breaks lose.
More money will be wasted at further talks in Brussels on the evening of February 9, 2012 as leaders get together once more to see if they can squeeze Greece a little further.
Economists generally believe that all of this will still not be enough. As the Greek economy contracts at an alarming rate the writing appears to be on the wall.
Others believe that Greece has now taken a vital first step on a long road to financial recovery. Having got itself into debt it has learned a hard lesson and must pay the price. March 20 is an important date for Greece this year and could be make or break time. Greek debt is complicated and you cananalyze it until you are blue in the face but not if you live in that country. That must be a nightmare. One that you would rather forget.
Wherever you stand on the Greek crisis you will be a lucky person if you are not an ordinary Greek citizen. It seems clear that Greece is in a no win situation, It faces an impossible task. Those who keep propping their debt up do so due to vested interests. Long ago a different solution should have been found. Now the EU is on a treadmill that is moving too fast for it to step off easily.
Greek in this blogger's opinion is doomed either way. Is it time to say enough is enough?
Note: Greece has to find €325m of cuts before the coming weekend!