July 18, 2024

News Cymru

Two sides to every headline

It started on the weekend with the governor of the central bank of Greece telling people he will send the Greece back to the 50s.

Now today a Greek government spokesman has come out and said Greece will leave the Euro if new austerity measures are not agreed.

The greek government has found their magic bullet.

The Greek government has found the key to passing undemocratic austerity measures.

Simply threaten Greeks with a Euro exit if they do not fall into line.

The first time it was tried was when Papandreou seemed to go crazy and call a referendum on a completely irrelevant subject.

Out of nowhere, with all the problems with the Greek government trying to balance its books, with all the problems of massive tax increases, Papandreou decided to throw a hand grenade into the argument by introducing an extra, completely separate and dangerously inflammatory issue.

As if the Greek government did not have enough problems, Papandreou thought it would be helpful to add to the mess by talking about what currency should be in circulation.

Trust me, nobody in Greece was even thinking about in or out of the Euro. Every Greek is on board with the Euro.

One thing that did come out of Papandreou’s apparent moment of madness was an almost complete change in the political landscape.

With a false choice on the table, all of sudden politicians on all sides were folding like handkerchiefs and coming into line with the austerity measures.

As I said at the time, the referendum move of Papandreou was either a moment of madness or extreme political savvy.

I am sure the international banks could not have dreamed that such a threat could have brought so much movement in their direction.

So every time there is a bit of resistance, the banks and the Papademos regime are rolling out the false Euro question, with the sole purpose of scaring Greeks. At least that is how it appears to me.

As if Greeks needed a reminder, if you fold in face of attack, you will be attacked again. If you show weakness will you encourage attack.

The question will be how far are Greeks prepared to bend over, how much slavery will Greeks tolerate in the face of this (I believe) fictional threat.

And as I said yesterday, all this ramping up of the Drachma threat does not bode well for what will be asked in the next round of austerity measures. It seems to me like the ground work is being laid for something big.



Euronews – Greece will have to leave the eurozone if it fails to reach a deal on a second, 130 billion euro bailout with its international lenders.

That unusually stark warning from government spokesman Pantelis Kapsis seemed to be aimed at building support among the Greeks for tough austerity measures.

Kapsis told Skai TV: “The bailout agreement needs to be signed otherwise we will be out of the markets, out of the euro. The situation will be much worse.”

EU, International Monetary Fund and European Central Bank inspectors have to agree details of the rescue plan this month.

Athens risks a default if there is no deal before a major bond redemption due in March.

Greece and its EU partners have repeatedly ruled out a euro exit, which could drag the single currency bloc even deeper into crisis, and usually avoid saying this is a possible scenario.

But top Greek officials, who need to push through unpopular reforms to clinch the bailout deal, have warned over the past few days that a return to the drachma would be “hell” and that the country must stick to austerity to avoid it.

Opinion polls show Greek voters want the government to do all it takes to stay in the euro even if they disagree with austerity reforms.


Get the latest updates in your inbox