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Greeks fight back against austerity
Greek workers went on strike against austerity measures on Friday, docking ships and halting public transport, hours after eurozone finance ministers said Athens needed to make more cuts to convince them to release a financial bailout.
Before they release more aid, Greece’s financial backers have demanded parliamentary ratification of the new austerity package this weekend, the identification of a further 325 million euros of spending reductions by next Wednesday and a strong commitment from all parties to implement the reforms.
But it may be a demand too far. Many Greeks, already suffering from five consecutive years of recession, are increasingly angry about the measures, which are unlikely to help an economy, where one in five is unemployed, shops close one after another and households are tightening their budget.
The central Athens Syntagma square, in front of parliament, echoed with loudspeaker calls to rally against the measures: “No to layoffs! No to salary cuts! No to pension cuts! Do not bow your heads! Resist!” (Photos: Reuters)
Greek government on brink of collapse
The Greek government teetered on the brink of collapse on Thursday over plans for a referendum on a euro zone bailout, with defections from the ruling party casting grave doubt on whether Prime Minister George Papandreou can survive a confidence vote.
“I don’t think the government will last until tonight,” said Costas Panagopoulos, Managing Director of pollsters ALCO.
Finance Minister Evangelos Venizelos broke ranks with Papandreou, coming out against holding the referendum after a bruising meeting with the German and French leaders, who made clear that Greece would not receive a cent more in aid until it votes to meet its commitments to the eurozone.
“The referendum is dead,” Greek ruling party lawmaker Nikos Salayannis said on state radio.
Nothing like a referendum to clear the air on bailout
What a scene: the mighty dealers in back-room bailouts and fiscal trickery, the wheelers of trillion-dollar barrels of cash through secret accounts and unfathomable routes, the foot-dragging political horse-traders who have been “rescuing” Greece for almost two years, the spinning factotums from monetary funds and central banks — all suddenly at the mercy of the thing for which Greece is world famous: democracy.
All are aghast, shocked, dismayed, running for cover. Stocks plunged, copper prices fell, disaster was predicted and the eurozone declared doomed — all the result of Prime Minister George Papandreou’s call for a referendum.
A referendum on what isn’t clear, but it may be the best thing that could happen to Greece and to Europe. Canadians should be especially alert to the benefits of referendums; Greece is to Europe as Quebec is to Canada. A good referendum, disruptive and divisive on the way through, clears the air quickly and decisively.
A referendum would certainly be preferable to the collapse of the Papandreou government and, by extension, the disintegration of the global effort to bring some order to the unwinding of Greece’s US$500-billion debt.
Gary Clement’s week in review for Oct. 23 to 29, 2011
Before last week is too far gone…
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Thousands strike in Greece to protest government cuts
Police fired tear gas at stone-throwing youths in central Athens on Wednesday, where thousands of striking state sector workers marched against cuts the government says are needed to save the nation from bankruptcy.
Youths broke up marble paving slabs and hurled the chunks of rock at police in full riot gear. The police responded by firing tear gas grenades, chasing the protesters through the square into surrounding streets. (Photo: Louisa Gouliamaki/AFP/Getty Images)
What the #!%*!: Understanding the U.S. debt ceiling
In this occasional feature, the National Post tells you everything you need to know about a complicated issue. Today, Aileen Donnelly examines the U.S.’s borrowing cap, the likelihood that the country could default on its debt for the first time in history, and how this could be avoided.
On Tuesday the Greek government survived a confidence motion. National Post editorial cartoonist Gary Clement’s take on the whole situation.
Greece needs ‘firewall,’ Flaherty says
The realization that Greece’s failed finances may be beyond repair is prompting calls for a drastic course of action: Quarantine. Among those advocating for the establishment of a “firewall” around Greece is federal Finance Minister Jim Flaherty.
“The danger is that the Greek situation unravels and that that would have a contagion effect on European banks,” Mr. Flaherty told reporters on Wednesday, adding, “we want to make sure the situation’s contained.”
