The Greek crisis from a Greek perspective

By George Karasaridis

In Greek mythology, Icarus burnt his wings because he flew too close to the sun. This is exactly what Greeks feel has happened to them in the last few months. Once the easy money dried up thanks to the global credit crisis, countries that where living way beyond their means suddenly found their feathers burning.

The reality is that most Greeks have moved away from denial, past the stage of shock and into the phase of anger. People are angry for a variety of reasons, they are angry at the politicians who deceived and failed them, they are angry at the European Union who knew what was going on and yet allowed things to reach boiling point, and most of all they are angry at themselves for allowing themselves to be duped.

The socialist government of George Papandreou has inherited a state where corruption, nepotism, apathy and poor governance are perceived to be a way of life. Earlier this week the prime minister visibly exhausted and no doubt under a lot of pressure, announced live on national television the most austere measures ever undertaken by any European Union member. A decrease in salary bonuses and a wage freeze for the next three years for civil servants, an increase in the retirement age level, an increase in VAT and excise duties, and a decrease in public spending. These coupled with a previous round of austerity measures announced last month, have not gone down well with the trade unions.

These austerity measures are considered as pre-requisites to triggering the loan package of €110 billion over three years from the Euro-Zone members and the IMF.

There can be no doubt that this crisis will spark a debate within the European Union on the future role of the Euro, as well as the implications for other countries for future Euro-Zone coordination. There is a general feeling both in Greece and more broadly in Europe that this crisis was not handled decisively by the politicians. The Greek government said one thing, the French government another and the German government bulked. This sent the wrong signal and has exposed the Euro-Zone to speculators. What has until now been considered a Greek problem, could turn out to be a Portuguese, Spanish, Irish, or even an Italian problem.

The European Union has been well-served for over 50 years by Franco-German leadership, but at this time of deep crisis, the model has been found wanting. Europe is now at a cross roads and my view is that this crisis will either bring Europe closer together and more integrated, or it will create a Europe of two tiers. One consisting of the northern European and one of the Mediterranean countries. We must do all we can to ensure that Europe remains united and that she speaks with one voice.

We can blame the “terrorists” on Wall Street with their financial weapons of mass destruction, we could blame the “Iron Chancellor” Angela Merkel for being stingy with her people’s hard-earned money and not bailing us out, but ultimately only we Greeks will be able to really solve our problems.

Greeks are a proud people with a rich culture and an even richer history. On a time line spanning more than 4000 years of recorded history our attitude towards money matters is, was, and always will be “Crisis? What Crisis?” To quote the ancient historian Thucydides: “The bravest are surely those who have the clearest vision of what is before them, glory and danger alike, and yet notwithstanding, go out to meet it.”

We Hellenes will meet that danger and we will overcome it.

HRH King George is the reigning sovereign of Greece and also the president of the Chuck Norris Fan Club in Athens