They say that lightening does not strike twice, not so the case with Greece I’m afraid. This is the second time that Greece a relatively small contributor to the Eurozone area has created an overwhelming sense of unease amongst investors. While most of us are becoming “experts” on Greek politics markets worldwide are struggling under the weight of uncertainty over the political situation in Greece for the second time in less than six months.
It seems the only thing Greek politicians can agree on is that they refuse to agree on anything. Constant back and forth headlines from the country are what is causing the Euro to head south to its lowest levels seen since January (1.2625). Most of the headlines are centred on the politicians refusing to accept that if they are to be part of the Euro they must enforce strict austerity measures which are obviously quite unpopular amongst the Greek people. As a Greek politician I’m sure that standing on your soap box and declaring that you are against measures that cause suffering and for measures that relieve it is certainly a great way to raise your profile and get your message heard but ultimately its fruitless and doing your country a great disservice.
The hypocrisy is almost laughable if it weren’t so serious, on one hand crying out against the “tyranny” of Europe and the IMF measures to stabilise the country’s debt levels and the other hand gladly accepting their bailout money to keep the lights on. Greece received a portion of their overall bailout package only last week a cool EU5.2 billion in total, and yet still they feel it is okay to not knuckle down and do some serious work on reforming their country.
With no coalition agreement in sight yet and certainly no appetite for tough decisions on austerity then this saga will run and run. Another round of polling is scheduled for some time in June so in between now and then Greece is holding the future of the Eurozone in their hands. It is a dangerous game that the Greeks are playing and patience is already starting to wear thin. The EU and IMF already released last week’s aid tranche to the Greeks and we are still dealing with the mess, I am starting to feel there will not be a second chance. Fool me once shame on you, fool me twice shame on me.
I wonder do the same politicians who so vehemently oppose austerity measures have a few magic tricks up their sleeves to numb the pain of its dear citizens when they are no longer part of the Euro and need to rebuild their economy without the ability to borrow from overseas creditors or political goodwill. Without any credible plan in place for a recovery the Greek politicians better be careful what they wish for as they just may get it and sooner than they think