Greece is often thought of as one of the most beautiful countries in Europe. She has wonderful ancient ruins and landscapes, but it is what has been happening behind closed doors which is much, much uglier. The previous Government showed absolutely no fiscal restraint and spent like crazy. The banks lent money to every man and his dog (stop me if you’ve heard this before), and not just those in Turkey but also those in former Eastern-bloc countries who have quietly suffered from the recession too.
The problems in Greece, which have been far worse than nearly all other Western countries, have led to huge debt problem. No one really cared about the nation until now, because the Euro is finally starting to suffer because of it. All economists could see the issue would not resolve itself, but instead of acting early Eurozone nations have decided to act too late. This unwieldy organisation is a good advertisement for sticking with the GBP.
How will the problem be resolved then? On Thursday, Angela Merkel of Germany and Nicholas Sarkozy of France, who love to work together to make an impenetrable force in European politics, have drawn up a plan which totals €23 billion or £21 billion. It will involve help from all Eurozone members and the IMF. The deal has not been agreed to by other nations, but it looks like there will be little opposition. To me, this sounds very unfair; two big fishes in the Euro Sea scaring the minnows into paying up. That’s not democracy.
When the Euro was agreed upon, there was an explicit spoken rule that no country would be saved if it had economic issues. The first challenge to this idea has managed to be successful and it shows a huge weakness of the Euro. One Euro-country can be handling their own economy perfectly but be put in jeopardy by the failures of another. For Britain, even with our current economic position, there is no need to risk joining the Euro. Let us stick with the Pound, a currency that we control – not the French or Germans.