Wed, Feb 15, 2012 - Page 9 News List

Europe must choose its future

The way out of the financial crisis faced by Greeks requires a decision about what kind of union Europeans really want

By Maria Margaronis  /  The Guardian, LONDON

Illustration: Mountain People

Six inches from the riot policeman’s shield outside the Greek parliament on Friday, a tall, pale boy was shouting at a man who could have been his uncle: “It’s your generation that brought us to this point, but it’s mine that has to pay for it. You have to take responsibility for what’s happening here.”

Across the road, a middle-aged woman roared at the line of cops: “Traitors! Collaborators! We’re Greeks. You’re beating up your mothers and your sisters.”

Another, her head wrapped in a pink scarf, screamed at the parliament: “They’ve drunk our blood, we don’t have anything to eat. They’ve sold us to the Germans. My child owes money, they’re about to take her house. I hope they all get cancer.”

All of them were in an ecstasy of rage, reluctant to go home and lose that temporary release.

As I write, the Greek parliament is preparing to vote on the bond swap agreed with the country’s private creditors and on the new deal with the EU and the IMF, which would lend the country 130 billion euros (US$172 billion) in exchange for cuts that slice the last little bits of flesh from the economy — including a 22 percent reduction in the minimum wage and 150,000 public sector job losses by 2016. Without the deal, Greece will default by next month; with it, the country will sink into a still deeper depression, with no end in sight. In a televised effort to rally the country behind yet more austerity, Greek Finance Minister Evangelos Venizelos laid out a blunt choice between sacrifices and worse sacrifices, humiliation and still deeper humiliation, if Greece should default and leave the eurozone.

It is not clear, though, how many people were listening. Exhausted by interminable cliffhangers and last chances, many Greeks have turned off the terrorist soap opera of the TV news and are trying as best they can to get on with their lives. The misery to which Athenians have been reduced — the soup kitchens, the homelessness, the depression and suicides, the rising tide of poverty that is swallowing the middle class — is now a staple of the features pages. It is harder to describe the sense of pervasive breakdown that gets under the skin; the feeling of disorientation and lost identity that comes with the collapse of the assumptions people lived by and the stories they told themselves about the future and the past.

When you ask people on the street if they would rather Greece went bankrupt than submit to further measures, many now say that it is already bankrupt, that public sector workers have gone unpaid for months, that hospitals have no supplies, that the poor are being wrung dry to pay the banks.

“Let’s get it over with,” a woman who works for the education ministry said to me. “Then we’d know we only had 250 euros a month and we could start again. This is not the people’s Europe we dreamed of.”

The fact that IMF European deputy director Poul Thomsen, the eurozone’s poster boy, Italian Prime Minister Mario Monti, the markets and countless economists agree that more austerity will deepen Greece’s depression without making the debt sustainable adds weight to her argument. The icy reception given last week to the Greek delegation in Brussels confirms the sense that its lenders are ready to end the relationship.

Why, then, have large sections of the Greek elite clung so hard to the fantasy that a new loan deal can “save” the country? The obvious answer is that default is a black hole and an enormous risk. No one can predict what suffering a default might bring. Another is that the current crop of politicians built their careers in the system that is now unraveling, based on oligarchies, clientelism and corruption; they have proved unwilling to make the reforms that might, in a different global climate, have revived both Greece’s economy and its democracy.

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