The austerity measures implemented in the past years did not really resolve any financial issues but instead gave birth to a humanitarian crisis, according to Vasilis Valdramidis, a Greek senior lecturer at the University of Malta.
“It became evident that the main outcome of these austerity measures was an increase in the national debt and unemployment,” he said, adding that recent reports showed the crisis was also the result of an attempt to save the assets of foreign banks.
As an academic, Dr Valdramidis was concerned about the “brain drain” his country was facing: a lot of human capital was leaving the country, hampering development and progress.
As a Greek, he hopes there will be a solution that not only addresses financial targets but also social problems and realities. “I do not expect any European member state, including Malta, to just contribute to a loan that is not viable.”
Fellow lecturer at the University of Malta, Georgios Yannakakis, is also hoping for a viable agreement.
The Greek government, he said, was in a critical phase of long negotiations for a viable humanitarian solution.
“It is important to remember that such a solution is primarily beneficial for Europe, not only Greece. I am hopeful that Europe, including Malta and Greece, will grab this unique chance and converge to an agreement that protects its interests and values as a whole.
“New non-viable loans or further unrealistic austerity measures can only be detrimental.” Prof. Yannakakis noted that in fact, the 2010 bailout programme for Greece and the austerity measures imposed by the European Commission, International Monetary Fund and European Central Bank had not been a plausible or logical solution.
“No bank loans money to someone who can barely afford the loan interest.
“The five-year austerity programme resulted in dramatic socio-economic changes and deep humanitarian and cultural reformations in Greece,” he said.
The figures were indicative: a 25 per cent drop in GDP, 29 per cent drop in food consumption, 60 per cent drop in pensions and 25 per cent unemployment.
Cuts in pensions are at the forefront of the concerns of a Maltese woman married to a Greek, as she should qualify for a pension in five years’ time.
The worst hit, apart from those who have suffered pension cuts and a rise to 68 in the retirement age, were young people who lost their job after taking out a loan.
“Life goes on, but people are scared of even losing the savings they have at the bank,” she said, noting that Greece’s debt will last several generations.
A fellow Maltese in Athens said people were keeping a positive attitude, hoping for an agreement and a chance to overcome this turbulent period.
Another observer meanwhile noted that there were some who were not affected by the crises, such as those in the shipping industry whose business was based outside of Greece.