Wednesday, August 15, 2012

Political: The Greek Balancing Act


In the last several months Europe has witnessed a shift in its political system, where the traditional parties have been ousted from government by growing nationalist and extremist parties amid internal and external pressures. The situation is best exemplified in Greece, where the recent elections brought about a new government whose decisions will ultimately decide Greece’s fate in the European Union. More importantly, the new government’s balancing of internal pressures from the unhappy populace and external pressures from the EU will set the trend for how economically struggling members of the EU will react if they face a similar situation.

In the internal front, pressure is arising from a growingly frustrated populace who is going to have to face even larger cuts to the amenities and services it has come to expect from the Greek welfare state. The recent riots against austerity programs as well as anger at the whole economic downpour places intense pressure on the Greek government to relieve some of the EU’s austerity programs that come with the bailout. Furthermore, the peoples distaste for the traditional pro-bailout parties, PAOK and New Democracy, has led to the growth of extremist anti-bailout parties such as the Syriza, which has the second largest number of seats in parliament. The situation almost reflects that of post World War 1 Germany, where dissatisfaction with the current political system in combination with economic downfall and international sanctions brought the rise of the radical Communist and Nazi parties. Although the moderate traditional parties continue to hold power, they will now have to contend with off-center ideologues whose power will continue to grow as the austerity programs, welfare cuts and economic burdens continue to increase public disapproval with the traditional parties.

Subsequently, the Greek pro bailout parties will have to negotiate with a stern EU community, who is willing to remove it from the organization if it will not comply with its austerity requirements and meet the set deadlines and goals for the bailout. Greek leaders have to negotiate with EU leaders who are increasingly feeling their own internal pressures to take action against Greece if no major shift is produced. The greatest tensions comes from Germany, Europe’s leading economic power, where a previously compliable Angela Merkel is in a difficult position as her political allies in the Bavarian Christian Social Union (CSU) and liberal Free Democrats (FDP) are increasingly adverse to further Greek bailouts.  Thus she is left with decreasing support in the Bundestag and little maneuverability to negotiate with the Greek leaders. Moreover, Greek Prime Minister Antonis Samaras will travel in Europe in order to convince EU leaders of his determination to pass the 11.5 billion euros ($14.2 billion)
austerity plan if he is given more time. The final decision on Greece’s future condition in the EU will likely come in September, when the "troika" of the European Commission, the European Central Bank and the International Monetary Fund is expected to decide on the dissemination of more of the 130 billion Euro bailout funds. Meanwhile, the Greek government will have to make a strong effort to tackle the endemic tax evasion and to further decrease the number of public sector jobs amid protests at home in order to meet the EU’s goal.

The current political situation in Greece is sustainable only if the current Greek government receives more cooperation from either the EU or its citizens. In my opinion, the Greek government has to first try to ameliorate the tensions within the EU making sure foreign leaders understand that patience is needed to implement their austerity programs. Simultaneously, the Greek government must attempt to root out the corruption and tax evasion that is plaguing the Greek state, a problem that which resolved could bring in some much needed revenue for the government and increase confidence among the people. Lastly, the Greek government must make the populace understand that the austerity measures and cuts in comfortable public services are necessary if the people wish to remain in the EU. The complex situation in Greece requires a lot of balancing if Greece is to remain in the EU, yet if the Greek people as well as the EU community both allow the Greek government some room to maneuver, the situation can be salvaged. Yet the overarching questions remains- Would it not be better if Greece drops out of the EU?

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