Good tidings from Greece
Last Sunday, the world held its breath as the first results from the Greek election started to trickle in. New Democracy, the centre-right party which is a member of the European People’s Party, emerged as the winner.
So the Greek voters decided. They decided to stay in the euro and to give a majority to the parties that could best secure this objective, notably to New Democracy.
Seven parties secured seats in the new Parliament. But during the campaign all eyes were focused on the struggle between New Democracy and the extreme left party Syriza, which were running neck and neck in opinion polls. And in the end it was a close call.
New Democracy topped the score with 29.66 per cent of the votes, with Syriza running a close second, with 26.89 per cent. In the end, the difference between the two was less than three per cent.
Victory for New Democracy means that Greece is bound to stay in the eurozone whereas victory for Syriza would have precipitated an ominous exit.
To be sure, Syriza insisted that it wanted Greece to stay in the euro. But its main platform was the scrapping of the bailout agreement that gave Greece a financial lifeline to help it overcome its severe economic crisis.
That was a major contradiction because, of course, you cannot have the cake and eat it. So, in the end, Syriza’s populist gamble did not pay off.
But only just. For by promising a mirage to a suffering Greek population, Syriza’s leader, Alexis Tsipras, managed to increase his party’s support from a mere 3.3 per cent in 2004 to last Sunday’s staggering 26.89 per cent.
Thankfully, the fact that New Democracy won the election means that the prospect of a Greek exit is now a remote possibility and a political and economic catastrophe may have been averted. For the time being.
Antonis Samaras, the leader of New Democracy, now has the mandate to form a government and he is to engage in talks with the other parties to form a coalition.
His party secured 129 seats in the 300-member Parliament, 22 short of an absolute majority. It, therefore, still needs the support of the mainstream Socialist Party (Pasok) whose 33 seats could enable it to form a stable majority. But the latter is unlikely to join a coalition if it is the only leftist party to do so. This is ironic considering that the bailout agreement was negotiated by a Pasok government. And all that is needed is to implement it.
Pasok’s reluctance could be overcome if yet another leftist party, the Democratic Left, which won 17 seats, also agrees to join. This grand coalition would give the government an unassailable 179 seats to the opposition’s 121.
And assuming that the three could hang together, they could implement the bailout agreement and introduce the necessary reforms to put Greece back on track.
Whatever the coalition, life will not be easy for any government that is formed as the austerity screw tightens further.
And, in opposition, Syriza need only wait a few years for its chance at the helm, hoping that the coalition will be short-lived. In the meantime, it can continue to fan strikes and resistance to the bailout package and to structural reforms in Greece.
So all is not clear. But it is better than nothing. And, in Brussels, Europe let out a collective sigh of relief.
Wilfred Martens, the president of the EPP, assured Mr Samaras that he has the full solidarity and support of the EPP in tackling the difficult challenges that lie ahead. He said that, at the next European Council summit, due on June 28, the EPP heads of state and government will give the necessary support.
On their part, the European Socialists too urged all Greek pro-European political parties to join Mr Samaras’ coalition and to work together for the future of Greece.
Mr Samaras has his work cut out for him. He stated that he wants to negotiate an EU stimulus package to run side by side with the austerity one. And he will sorely need the European Council to endorse such a package for the whole of Europe. This would send a clear message of support to Greece.
But stimulus packages do not perform miracles and their effect will not be felt immediately. So the euro match is not over.
The euro problems are likely to persist for some time. But, at least, we have good tidings from Greece. If a coalition is formed and if it holds long enough, Greece may yet be saved. That would be good news for the euro and good news for us.
Dr Busuttil is a Nationalist member of the European Parliament.
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Alex Ellul
Jun 21st 2012, 16:42
While we the people are being asked by our politicians to make sacrifices to save the bankers (and themselves), our EU and global politicians are cavorting in RIO. Have a look here:
http://thebiggreenlie.wordpress.com/2012/06/19/eco-whackos-in-rio-wine-and-dine-while-trying-to-tell-the-developed-world-to-give-up-their-quality-of-life/
Martin Webster
Jun 21st 2012, 10:21
''And, in Brussels, Europe let out a collective sigh of relief.''
I bet they did. That's the expected reaction of left wing, self-centred european imperialists focussed on self-preservation.
But the longer the Greeks stay in the Eurozone, the more they will suffer. I guess that is of no interest to Brussels, but it is to the rising numbers of unemployed hampered by a currency, the means of trade, they cannot control.
First we didn't need a political union in order to have monetary union, then we needed a fiscal compact, now we also need a 'growth' compact. All in an austere environment. This thinking is so muddled, the articulation so comical, I do not know how those who utter such nonsense are not embarrassed.
Zero credibility, Zero trust.
james cairns
Jun 21st 2012, 14:10
I couldn't agree more. Sorry Simon, but it's not up to the Greeks whether or not they stay in the euro. That decision lies with Herr Merkel. Life is going to get a lot worse for the Greeks. The EUSSR doesn't care who gets trampled underfoot as the out of control juggernaut tears through Europe with Attila the Hun at the wheel!
Mary Mills
Jun 20th 2012, 18:07
Incidentally (just as an aside), Señor José Manuel Barroso doesn't half have a big assortment of all kinds of honours, honorary degrees, collars of different Orders (personally don't know what that's about) including the Knights of Malta...
Now let's not ask why - only, perhaps, to know, 'Kif ma jinfixilx?!'
Alex Ellul
Jun 20th 2012, 16:00
Dr. Busittil, what we, the people of the European Union, especially the Eurozone expect is that the top UNELECTED EU bureauc rats resign from their positions following this economic meltdown they have caused while you and the other ELECTED representatives ELECT new leaders that you really believe can lead the EU back to properity as it was when this Europe of ours was still called European Economic Community and which was the richest place on earth following the USA. Go for it Simon. Start the march on Brussels and give us back our Europe. We believed in it in the past, it was taken over by an ex-Maoist (this is true and you know who I am referring to) and turned into a champagne-socialist quagmire in cahootes with the bankers and billioners, all sharing the spoils of the money they took from us.
The only other option is the fall of the Euro and the EU. We cannot keep on moving money from one bank to another. The Spanish banks failed so we borrow money from the other countries banks. Then the Greek banks fail and we again borrow money from the ones still standing, then Italy, then Cyprus.... This has to stop somewhere.
Alex Ellul
Jun 20th 2012, 15:45
@ Charles Grixti: It's good that there are people out there who can read the situation. We have to propagate this knowledge to ALL the people, so as to pressure our politicians to act responsibly and get also the mainstream media to highlight the real cause of all this finacial debacle, what I like to refer to as: Catastrophic Anthropogenic Global Financial Meltdown.
Charles et al, try reading about the Bilderburg Club or Group. This club meets 'by invitation' every year and nobody knows what is discussed. However, in the list of attendees, one finds:
Mario Monti, the current UNELECTED prime minister of Italy, Merkel, Barroso, top UK ploiticians, Bill Clinton, Gerald Ford, Kissinger, and many international BANKERS. Obama and Hilary Clinton are known to have attended, secretly, this years Bilderrberg meeting.
Many years ago a leading US banker said that one day the world will be owned by the bankers. It has happened. The bankers rule the world and every time a bank goes bust, the governments bow their heads, print money, and handed over to the banks.
But when a family defaults, and the bank cries FORECLOSURE, no government prints money to save that family from being thrown out of the property and therefore end up eating scraps of food from the rubbish bins while bankers keep on eating caviar and drinking champagne and shareteir spoils with the politicians. They are called Champagne Socialists for a reason you know.
Charles Grixti
Jun 20th 2012, 18:08
Yes, I am well versed on the Bilderberger Group, the CFR and hundreds of right-wing think-tanks and 'institutes' created to push forward the globalists corporate agenda. The official media I am sorry to say, cannot be trusted or relied upon since it is owned and funded by the same people.
People need to stop watching TV and do their own research and get alternative news on the internet (as long as it remains uncensored).
Here is a web site of a fascinating man who seems to know what is going on better than anyone. His name is Alan Watt (there is another on the web with the name of Alan Watts, but the one with the 's' in his name is not the right one).
http://www.youtube.com/watch?v=7LL4M-HhXLs
Eddy Privitera
Jun 20th 2012, 15:26
Continue to dream Simon ! You should have learnt by now, that what the politicians decide means next to nothing. One has to see how the people and the unions react. And, most important of all, how the money markets react. Whether they believe that the dcusions taken arr going to work or not.
But, I believe, as many economists believe, that the single currency for so many countries with so many different economies, cannot work. It's that silly " one-size-fits-all " idea, that is at the core of the problem !
Mary Mills
Jun 20th 2012, 13:01
We're waiting to see what sort of coalition will be cobbled together by the same members of the Greek political dynasties - the now metamorphosed Samara's New Democracy and Pasok party which will need the extra 'spoonful' of the Democratic Left to try to, technically, form a government. Quick, in the next few hours.
The medicine of austerity for the Greek people will mean loss of 15,000 public sector jobs, and another 15,000 next year, wage cuts of between 25%-30% with minimum wage tagged at 600 euros a month, privatisations, opening up the professions to competition, proper tax collection.... oh and pension cuts. Let's see how far Greece's governance will get in implementing the bailout conditions.
However, such were the 'good tidings' re Greek re-run elections, as far as market confidence went, that the morning after, Spain's borrowing shot above 7%; of course, in Spain's case, Rajoy had already "clinched" the 100 billion euro 'rescate' for recapitalisation of the banks for whom the State itself is guarantor. Incidentally the conditions regarding the 'cool' loan to Spain still have to be worked out. No certainty either whether the money is going to come out of the EFSF or the ESM which still has to come into effect. In short, the markets aren't fooled by politicians, much as the latter try to camouflage what really is going on.
The 'good tidings' re Greek re-run elections - a small addition to the moralistic attitude (instead of analysis) of a power-jealous, old euro political élite that has wanted to forge ahead with political integration - with a single common currency as a 'profitable' (to EU's robust members) constraining mechanism.
Sr José Manwel Barroso (chief unelected bureaucrat) may well be allowed to be on the defensive at the G20 the other day, telling off the Canadian premier ".... not here to be lectured...", as well as disingenuous blaming Euroland problem as having "originated elsewhere". Unelected but still not quite the lapsed politician that he was, is!
The thing is that many look not to politicians to be informed. Not to MEP's, so, so desperately clinging to any bit of straw to wrest power for themselves.
Re the in-built problem with the euro, the fault is, essentially, not with Greece (discount even whatever its economic, political and social make-up/flaws might be) as economist and nobel-prize winner, Paul Krugman argues. Rather, Greece is victim of the architecture of the euro that allowed Greece to adopt the currency in the first place; the fault lies with none other than Brussels, Frankfurt and Berlin; 'so, please stop acting as if you were morally superior' - main thrust of his argument.
The 'good tidings' (don't tell us it's Christmas come round again!) a bit of hollow "She's alright mate" !!!
Mary Mills
Jun 20th 2012, 12:03
We're waiting to see what sort of a coalition will be cobbled together by the same members of the Greek political dynasties - the now metamorphosed Samara's New Democracy and Pasok party which will need the extra 'spoonful' of the Democratic Left to try to, technically, form a government. Quick, in the next few hours.
The medicine of austerity for the Greek people will mean loss of 15,000 public sector jobs, and another 15,000 next year, wage cuts of between 25%-30% with minimum wage tagged at 600 euros a month, privatisations, opening up the professions to competition, proper tax collection.... oh and pension cuts.
Such were the 'good tidings' re Greek re-run elections, as far as market confidence went, that the morning after Spain's borrowing shot above 7%; of course, in Spain's case, Rajoy had already "clinched" the 100 billion euro 'rescate' for recapitalisation of the banks for whom the State itself is guarantor. Incidentally the conditions regarding the 'cool' loan to Spain still have to be worked out. No certainty either whether the money is going to come out of the EFSF or the ESM which still has to come into effect. In short, the markets aren't fooled by politicians, much as the latter try to camouflage what really is going on.
The 'good tidings' re Greek re-run elections - a small addition to the moralistic attitude (instead of analysis) of a power-jealous, old euro political élite that has wanted to forge ahead with political integration - with a single common currency as a 'profitable' (to constraining mechanism.
Sr José Manwel Barroso may well be allowed to lose his rag at the G20 the other day, telling off the Canadian premier
Alex Ellul
Jun 20th 2012, 11:45
There are three ways of how a state gets more money to run the country and its institutions:
1. Taxing the people for it
2. Borrowing that money
3. Printing it.
All these three options have negative impacts on the state's economy, and no positive ones, because it simply means that there are less people creating wealth while there would be more people wasting that wealth away.
This is basically what is happening in the EU and even in the USA. Governments are spending more, therefore taxing more, borrowing more and most probably printing more money, what is called 'fia' money.
Printing 'fiat' money has always resulted in the total ruination of the state's economy. This was even tried, centuries ago by a Chinese dynasty which fell after a few years.
A new word has been introduced in the world of economics: Ineptocracy, which refers to:
A system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of capable producers.
Charles Grixti
Jun 20th 2012, 13:31
You are absolutely right Alex.
The first enthusiastic users of 'fiat' money were the US who have now continually urged Europe to do the same. The ECB finally gave in and printed billions of Euros.
The main aim of all this is one - to ensure that the wealth is sucked up to the top elite classes, leaving the rest wallowing in poverty. Previously prosperous nations in Europe will see their Middle Class disappear into poverty and oblivion and see the 'privatisation' of public assets to private firms and speculators, who will buy these tax-funded enterprises for far less then they are worth, usually at pennies to the euro, thus sinking the dagger deeper into the hearts of working people, many of whom will lose their jobs as a result of the privatisation and accompanying 'restructuring' and mergers. The role of the IMF and World Bank in all of this cannot be underestimated.
They are banker-created instruments, created to go in to 'help' by giving 'fiat' money created by them out of thin air and collecting exorbitant debts on this same money that cannot be reasonable be repaid, by this and future generations, so in return for their 'fiat' money they usually ask to be paid in kind, i.e. real value objects, such as factories, resources, idyllic islands, etc. It is a total scam and those in government are in on the deal. That is why the Greek election were "turned around" so fast, with the Socialists losing by a margin in favour of the Conservatives - for the Achilles heel of the whole Ponzi Scheme is to refuse to play by these rules (same way that Iceland did it).
Rod Enderby
Jun 20th 2012, 11:39
Good tidings?! What planet is this man on ?!
just another sticking plaster over a gaping wound and now italy and Spain require bailouts.
The Euro is the problem and it should be put out of its misery,except too many politicians fear losing face.
Please choose the reason of your report below: