5.05.2010

The New Face of Greek Tragedy

Three, including a pregnant mother, died in rioting in Greece today. The drama in the southern European state has its roots in the financial crisis and the resulting austerity measures being embraced by the Greek government as a prerequisite for EU aid.

While this result is sad and unfortunate, it is easy to feel sympathetic toward the estimated 100,000 Greek citizens who have taken to the streets. Unlike so many governments around the world (whether realistically or not is a different matter) theirs is promising not prosperity, but belt tightening, and that for the foreseeable future. It is also difficult to throw stones from the glass house known as America where life-ending disturbances have been known to break out over events as trivial as a sports contests, seemingly as often in victory and as in defeat.

However, it is difficult to envision what could result from the ongoing riots in the Mediterranean other than more injuries and unfortunate deaths. Unfortunately, while Greeks don't like the idea that benefits are going to be cut, the country will likely cease to function without the aid money, leaving the nation truly stuck between Scylla and Charybdis. Though painful, the major budget cuts which are being protested, accompanied by aid monies, seem to be best of poor options.

The old heroes of Greek tragedy were God-like in power and had lives marked by epic deeds. Unfortunately, in modern times and in the midst of a financial meltdown, the new face of Greek tragedy is the common man. Hopefully Greeks, though understandably angry, will soon acknowledge the lack of options available to their government. This will ease the transition from reactionary rioting to the initiation of the rebuilding process. Austerity may be painful, but it unfortunately seems to be the only route to a brighter future.

UPDATE: It looks like there is no end in sight to the violence as resistence to austerity measures gains steam.

3 comments:

  1. Greece is in deep shit. I was just reading on WSJ about the terms of the bailout package- price and wage freezes, pension cuts, VAT increases, income tax increases and mandatory layoffs. The bail out of Greece is a selfish act by it's closest creditors to see to it that their balance sheets are protected. The Greek government may have a real deal uprising on their hands whether or not they get the the bailout from the EU. Look for extended strikes from the labor unions, especially if the package gets approved- the strikes will completely cancel out the bailout strategy as it is closely tied to taxing and limiting the hell out of the workers, whom it looks like now hold the key to Greece's future- for better or worse (probably worse)

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  2. Thanks for the comment Jon.

    Unfortunately, though the bail out may be self-serving, it may also be necessary due to the domino effect that not giving Greece funds would create. Spain and Portugal are teetering on the brink of financial meltdowns themselves, and if the other EU states were not to back Greece, it is possible that such a collapse would become a near certainty.

    This was always the downside risk of the EU as a monetary union. Though it has been an overall beneficial system for many of the participants, there was always a risk that a weaker economy, with no opportunity for natural currency depreciation, would have a tough time recovering from short term blips.

    I agree with the comment on the unions...strikes would be debilitating. This is why I believe that the key to fixing Greece isn't so much the government, but the Greeks themselves. If they reject efforts to remedy the situation, such remedies are undoubdetdly destined to fail.

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  3. More on the idea that this problem could spread without emergency measures:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aHBV.uEl8u0E&pos=3

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