Referendum on Euro
Bravo,
Mr. Papandreou!
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.
