It transpires that given the indiscretions and poor governance of Greece, the sword of Damocles ironically appears poised to strike a mortal blow at that country with the other members (Malta included) vowing to “stand shoulder to shoulder in making a determined and co-ordinated effort to offer assistance”. All well and good, but is it so?
Greece belongs to the Eurozone group known unsympathetically as the PIGS (Portugal, Italy, Greece and Spain), all of whom are in dire financial straits with massive debts and their economies all on the precipice of bankruptcy. So how secure is the Euro as a viable long-term currency and the impact larger nations’ fiscal troubles have on the other members of this merry band of same-boat brothers?
In particular, precisely how much of Maltese taxpayers’ money will be dancing to Zorba’s tune and end up in Greece? Whilst it is a magnanimous gesture of the fellow Eurozone brothers to intervene and offer financial support, it would contravene the criteria of the Maastricht Treaty to effect a bailout, yet is this financial supporting handout merely putting a band-aid on a gaping wound? For now such apparent largesse opens the bank vaults of the more affluent nations of the Eurozone, and sets a precedent to enable further handouts or similar assistance to the other troubled countries; or at least provide the rationale not to be in a position to refuse such financial aid.
This current situation is not just a tragedy for Greece but will have massive repercussions and ramifications not only affecting the other Eurozone countries (in particular their cohorts wallowing in the Pigsty) but all their trading partners.
Is devaluation a viable option to possibly promote better balance of trade figures and encourage tourist arrivals from non-Eurozone countries, in particular the UK? Or is the abandonment of the Euro a true alternative to enable a return to an individual country’s own chosen sovereign currency? In any event, I would suggest that the future for the Euro is neither bright nor viewed with any degree of longevity, and this current crisis merely endorses and corroborates such a prognosis.
Only time will tell, but are we in Malta really in any position to donate (loan?) a massive sum to the IMF (not taxpayers’ money, our Finance Minister hastens to inform us but rather profits generated by banks from taxpayers – and how much do these same banks contribute towards safeguarding our depositors funds via the €100,000 compensation scheme, as opposed to the taxpayers’ contribution?).
Could there be method in this seeming madness? As is it surely a mere matter of time before we seek the intervention of the IMF ourselves to come to our rescue. It’s all Greek to me!
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