The Greek experience

IN May, the IMF, European Commission and European Central Bank – now referred to as the troika – were called into debt-ridden Greece on the verge of financial collapse.

But six months since the troika’s arrival and a deal being done, the Greek economy is still struggling.

Revenues are not what were predicted under the bailout deal, and the deficit is above what the wave of austerity measures were designed to achieve.

Last week, as troika monitors were back in Athens to review progress, the Greek government announced plans to cut another €5.1 billion in spending in 2011.

Viewing last week’s events in Ireland from Greece, a fellow nation of the European periphery in more senses than one, there is an unavoidable sense of déjà vu.

Finding their economies in crisis for different reasons, the Greek and Irish people are now confronted with a period of austerity that will test their societies to their very limits.

Last December, as Greece’s credit rating was downgraded, most Greeks had little idea of what was coming their way, and the belief that this was just another hurdle the country could dodge was widespread.

But, as the bond spreads rocketed, they had a rude awakening to the ruthless reality of the international financial markets.

Indeed, most had no idea of what spreads were, and, not even having a single word for it, the Greek language simply borrowed the English word without rendering it into its own alphabet.“

Greeks don’t agree as to where this will lead the country. More radical, neoliberal voices believe only a ruthless application of more economic shock therapy can resuscitate the country.

Greece’s powerful left sees the whole process as having all the components of a long-term plan to subvert the country and its people.

Many in between these two poles are simply resigned to the country’s fate, whatever that may be.

“The Irish are the Greeks of the North,” the Greek poet and Nobel laureate, George Seferis, is attributed as saying.

Whatever the reasons for the analogies, it’s unlikely the poet was referring to the deficits, disgust with those in power, massive pressure from foreign governments, and an apprehensive public that they now have in common.