Greece – EU Ultimatum With Austerity

July 15, 2015

By Padmini Arhant

Following the national referendum early July, the international creditors and EU members, the German leadership in particular ruled out economically viable options such as debt write off and financial plan aimed at restructuring, capitalization together with growth oriented reforms besides spending cuts to rescue Greece from precipitous decline.

The recent EU summit has enforced more austerity in defiance to Greece citizens’ rejection of the failed policy responsible for Greece deterioration and similar impact across Europe leaving 25 million and more workers in the unemployment category.

The EU decisions evidently prioritize pride and pecuniary power over pragmatic solutions to debt crisis.

Another obvious sign in the ongoing development is EU re-attempt to remove incumbent government considering earlier outcome with plebiscite on austerity attached to government resignation upon YES vote went the other way.

Accordingly post EU marathon meeting, the determination to cause political instability instigating infighting in Greece during prime time of government preparing to present EU recommended grave austerity programs to the Parliament is not a coincidence.

The turbulence in Greece with external meddling in political affairs of a sovereign state has striking resemblance to events in Ukraine.

Ironically, the austerity proponents in EU consciously ignore the costs related to holding referendums and frequent elections by stirring political tensions to jettison the premier and the government not approved by them.

The involvements also pronounce the respect or the lack thereof for foreign state sovereignty.

I reiterate on EU bureaucracy costing EU citizens a fortune and yet EU dogma on austerity is extremity overriding rationality.

When a nation is deprived of income due to lack of investments in the economic sector saddled with common currency euro compromising competitive edge in trade and microeconomic activities,

The spending cuts and draconian measures arguably exacerbate economic conditions stifling any chances of recovery.

EU offer on the third bailout €86 billion tied to harsh financial terms is aimed at ejecting the present government rather than addressing the economic recession and liquidity problems in the country.

The contemporary practice to destabilize nations for ulterior motives guaranteed to affect sources especially in the inter-dependent regional and global economic environment.

EU and euro zone protectionists’ egregious doctrine on severe austerity proved a phenomenal failure and no longer sustainable. 

France is an  example of austerity stricken economy producing massive layoffs  and government legislation extending retirement age while reducing pensions and wages crippling the French work force.  

French Prime Minister Manuel Valls emphasis on Greece remaining in euro zone otherwise opposition to GREXIT was explicitly stated as geopolitical importance clarifying EU real intentions slighting Greece and other member states viz. Spain, Italy, Portugal and Ireland…economy. 

EU steps against Greece economic stimulus is counterproductive.

The insistence on trying same experiments expecting different results defy basic intelligence not to mention the expenses incurred in the repeat trial and error methods aggravating the process.

EU commitment is saliently towards saving euro zone and parallel government in Brussels than outreach member states with necessary financial package.

Greece government approach to resurrect economy and release the people from indebtedness lies in independent economic and financial management reinstating the original currency drachma backed by sound monetary, fiscal and trade policy.

The opportunity is far better and greater with people governed state in control of national assets and treasury unlike existing hierarchy subjecting member states to individual and EU parliamentary procedure on critical economic matter contributing to waste of time, resources and money in the austerity dominant era.

Perhaps Greece resonance in this respect could avert political turmoil ending economic misery.

Good Luck! To Greece population in claiming political and economic freedom.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment