When it was decided that Greece was to enter the European Union and later to join the Euro, it was well known what was the make up of the economy and what the implications would be in the event a crisis would hit – and the crisis came much earlier that anticipated, with devastating results for Greece. Bound to the Euro, Greece could not take monetary policy actions, thus restricting actions in the field of fiscal policy, which requires legislative intervention, change in the way the government works and its control mechanisms and finally, persuasion that all this will work so that the people of Greece will align, comply and support.
This is fine if you have time but in the case of Greece time was not an option and the European Union proved that it did not have mechanisms in place to confront this kind of a crisis and most important, the European Union has much to do before we can be a Union.
Under pressure, the European Union decided to support Greece with its problem, in view of the effects on the Euro, with unrealistic conditions. Later on the European Union will admit that the crisis was not only because of the internal makeup of Greece but a mass attack on the Euro from the international markets.
Never the less the conditions set by the European Union have to be met by Greece and the Greek people while a ferocious negative publicity campaign was launched by the international media. Organized or at random the effects had a negative impact on the Greek economy and in particular tourism, one of the most crucial sectors which can contribute positively.
In view of the situation the Greek government has taken unbearable measures, and continues to take while the Greek people exert effort to manage. As for tourism, the government has taken significant measures to make it attractive and competitive for tourists to come to Greece in the 2011 tourist season and the Greek travel and tourism professionals are doing their very best to bring tourists to Greece.
As early as the first quarter of 2010 in an article of the Financial Times (Mar. 22, 2010), “Barroso demands solidarity on Greece” and he got it in part on behalf of Greece. We got the funds and we did not go broke – yet.
We say “yet” because Greece may be able to make the necessary legislative changes and the way it operates and the Greek people may support all this, but when the time comes to repay the loan the country’s economy may be so exhausted making it impossible – as no significant investments are foreseeable under the current conditions.
What else can the Europe Union do to make sure that they get their money back and save the Euro from a possible bankruptcy of Greece?
Tell their citizens to choose Greece for holidays and business meetings, rather than spend it somewhere else. Greece is a premier destination with the necessary infrastructure
Its not a mater of “solidarity on Greece” its a mater of European Union.
When the USA was hit with 9/11, they did not let New York squirm and crumble, they proved they are the United States of America.