Μια εφημερίδα που δεν θα δούμε εδώ (Spiegel)

Referendum on Euro

Bravo, Mr. Papandreou!

A commentary by Sven Böll

Photo: REUTERS

Europe was expressed disbelief: The Greek prime minister will let his people vote on the euro rescue plan for his country. Papandreou puts everything on one card - but his decision is correct.

Hamburg - It must be said that at the beginning: The Greeks should for once again decide how it goes with their land - and with them.

They had no real opportunity for some time more. Since a half years, the once proud country is under foreign administration, it is de facto no longer a sovereign state. The most important task of government is to bring the saving programs and structural reforms through parliament and implemented. They are always dictated by the strict troika of EU Commission, European Central Bank (ECB) and International Monetary Fund (IMF). Otherwise there is no new money, and the country would be bankrupt right now.

To be no longer master of his finances, begging for money and almost everything having to do it, that's for poor countries as well as undignified for poor people. It hurts the soul, makes you angry and makes one despair. If one knows that one's position is also largely self-inflicted, it does not do better, but worse.

It seems like an appropriate act of desperation on the dramatic situation on a "suicide from fear of death" that the Greek Prime Minister Georgios Papandreou, the people of his country wants to ask for debt consolidation . The voters will decide whether to endorse the decisions taken in Brussels or not.

The x-th €-saving summit had decided last week that the private creditors to Greece to give up half of their claims . Because of the lie more than 300 billion euros of government debt of 200 billion euros at banks, insurance companies and funds, the country would be a sizeable part of the overwhelming burden off credit.

Three good reasons for Papandreou's decision

Regardless of how the question of the referendum will be at the end: The Greeks will vote on whether their country will remain in the euro zone or leave the monetary union. The government could ask the citizens very directly: "Will you continue to pay the € or rather return to the drachma?"

How this Papandreou can! Their own people ask that runs against his policies storm!Since it is already clear what comes out! So many are spontaneous reactions to the announcement of the Premiers.

Especially since it was the biggest concern of the other euro members so far, that Greece "Bye € 'says. The formula for European apocalypse goes like this: first goodbye Greece, Portugal and Spain will fall, and finally pulls the monetary union with Italy over the precipice. With luck, there remains a Northern European Euro-Zönchen.

No question: This risk is that if the Greeks say no to the Brussels decisions. Papandreou plays full risk. Nevertheless, his decision is correct for several reasons.

First, the Premier needs an immediate justification for his actions. He was elected against escalation of the debt crisis. The policy which he makes requires extreme steps.In Greece, arguing the parties do not have a bit more net from the gross, a vignette on highways, or the closure of some sites Bundeswehr. No, it is saved as brutal as ever in a developed country. German Finance Minister would so ruthlessly cut spending like his Greek colleague, he should, within one year about one hundred billion euros to spend less.

Second, the opposition operates in Greece obstruction. She also has a half years after suffering still not understood that the country can not use partisan antics. Through a referendum after all, the hope is that the opposition comes to his senses. At least, it must position itself clearly as she imagines the future.

Third, Greece is in a downward spiral: Almost all citizens are victims of austerity, many of them understand the world and no longer on strike. But if even those not working who do not have jobs, which harms the economy further. The economy collapses further. New, tougher measures are needed. And so on. Would the majority of the population profess to chosen path out of the crisis could be ended this horror mode most likely. Strikes would probably be delegitimized.

Encouraging experiences

There is some evidence that the Greeks support their premier at the end and the Brussels decisions will not torpedo. The majority of citizens think that there must be an end to the decades-long mess. Many calls about the pace of change, but they are not against the change in direction.

Encouragingly, the experiences from other euro area countries. The debt crisis has already wiped out several governments - such as Portugal and Ireland. However, the party won a majority, announcing sometimes even tougher austerity measures.

Until the referendum in Greece, there will be an intense debate about the alternative: Cruel redevelopment within the euro zone or state bankruptcy with drachma introduction.

It will show that it's not about the choice between hell and paradise. Both routes will be difficult and grueling. Each citizen must decide for himself what he believes to be the better one. Who votes and is thus deprived of their duty is to think about whether he wants to set for an exit from the currency union his assets at risk. Savings would be at the return of the drachma hardly worth anything.

At least it has every Greek in their own hands and can not complain about the government, which bows to international dictates. And even if the Greeks say no at the end of the country and in extreme cases, leaving the euro zone, the consequences seem less precarious than a year ago.

The main problem with a return to the national currency is the drachma will massively decrease in value. Because the debt continues to exist but in euros, the government would spend more and more drachmas to pay the € debt. They would quickly bankrupt.

Therefore, it would probably come before an even more radical cut debt. Then the state would have to surrender some of their claims to creditors. Finally, always store more Greek debt at the ECB and other euro countries. For this waiver, it would probably stay at one of Greece in the monetary union. Only later, instead of just once.

Also, the risk of contagion to other countries does not seem so great. No country in the euro-zone, it is as bad as Greece. It now seems even the players in the financial markets to see it.