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Greek accusations that Merkel is behaving like a Nazi are unjust: it might, though, be a good Lenten exercise for Germany to embark on a penitential self-examination
This massive “bail-out” is intended to save the eurozone, not the Greeks
By William Oddie on Wednesday, 22 February 2012
In This Article
Angela Merkel, eurozone crisis, Germany, Greece, Matthew Parris, The TimesShare
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William Oddie
Dr William Oddie is a leading English Catholic writer and broadcaster. He edited The Catholic Herald from 1998 to 2004 and is the author of The Roman Option and Chesterton and the Romance of Orthodoxy.
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Germany’s role in imposing what many think are punitive conditions on Greece for the latest supposed “bailout” of the Greek economy has led to huge anger against Germany on the streets of Athens and—to the bewilderment of the Germans—comparisons with the behaviour of the Nazis, who occupied Greece in 1941 (causing the deaths of over 300,000 civilians from starvation in Athens alone, and tens of thousands more through Nazi reprisals, and leaving country’s economy in ruins). It hardly needs to be said that these accusations are grossly unjust. Have a look at this:
Of course, it’s all nonsense. The Germans really don’t want to take control of Greece or of anything else. In a way, that’s the trouble: the Germans are so sensitive about their past that they have in the past shrunk away from exercising a leadership role even when it would have been appropriate. So they are shocked by these accusations, and at the anger against them for (so far as they are concerned) saving the Greeks from the result of their own irresponsibility.
The Germans, however, have brought this Greek anger on themselves: for, the fact is that the Greeks are right to think that there is absolutely nothing in this latest “bail-out” that will do anything but lead them deeper into debt and make their own economic recovery even more unlikely than it is already. This is where a little German self-examination would be appropriate: for what they are really doing now is not saving Greece at all: it is saving the eurozone banks who so foolishly lent the Greeks such huge sums of money when they adopted the euro as their currency, without any thought of how they were ever to repay it. The eurozone is directly responsible for the plight of the Greeks, by letting them in in the first place.
The vast sums of money it is now handing over will leave Greece almost immediately: the Greeks will get no benefit from any of it. Greece will have to repay it: but the purpose of the loan, I repeat, is to save not the Greeks but the eurozone and its banks.
An individual who is so heavily indebted that he can never repay his debts has two paths open to him: if he is foolish, he will get even deeper into debt (the path now being imposed on the Greeks); if he is sensible, he will declare his bankruptcy. This will lead to a period of hardship: but it will at least allow a fresh start, and he will be able to rebuild his life. Giving Greece another “bail-out” is like giving a man heavily in debt yet another credit card.
I have seen only one analysis of the situation of Greece and of the treatment now being meted out to her (and the real motives behind it) which looks at all near to what seems, to me, to be the reality; it was written by Matthew Parris, and it appeared in the Times newspaper on Saturday. Since the Times isn’t online except to subscribers, I can’t give a link, so will quote at some length:
What then should now happen? Heaven knows, I’m no economist. But so what? Professor Dawkins says that you shouldn’t believe anything that can’t be proved: well, that may not be true of religious belief, but it certainly seems to apply to much, if not most, economic theory. And since economists are just as confused about all this as anyone else, why shouldn’t a non-economist suggest his own solution, based merely on what seems to him common sense?
What Greece needs, it seems to me – among much else, including a clean-up of political corruption – is an orderly default on her debts, followed by some kind of Marshall plan (at least we know that worked). As for the eurozone (which the Greeks should leave immediately) that should be shored up by handing over the “bail-out” money just agreed in Brussels not to Greece but direct to the bankers whose loans are now due to be repaid, in order to protect them from collapse: but, as with the Royal Bank of Scotland, that should involve a partial transfer of ownership pending an eventual repayment of these huge sums, not by Greece but by the banks who foolishly lent them so much money.
Meanwhile, the Germans should have a good hard look at their own behaviour. As Matthew Parris puts it: “Do the rest of us not feel a shudder of distaste at the insistence that Greece’s elected politicians sign personal declarations about what manifestos they will, or will not, offer their own electorate in their own general election? …. how tin-eared do you have to be to miss the note it will strike among a population some of whom are actually running out of food?” Parris is right: this is not cautious and sensible, as the Germans appear to think it is: it is simply brutal. Greek democracy is presently in a delicate, not to say positively unstable condition: do the Germans really want positively, once more, actually to destroy it?