If Greece falls, others will follow
, עודכן
The Greeks have taken to the streets in fury. Not even the Gods will placate them, let alone Brussels. Lawmakers in the Greek parliament approved a 28 billion euro cut and cashed in state assets valued at 50 billion euro. The Greeks know someone has to pay the price and that someone is them.
The European Union and the International Monetary Fund have promised to help but in order to get this aid, Greece is to shave 20 billion dollars in government spending and raise another 20 billion dollars beyond that. How could this be accomplished? By cashing in assets and raising taxes. It is no surprise that the ordinary Greek citizen, used to the good life, is discontent to say the least. S/he will now have to work a lot more, earn a lot less and part ways with national assets. To whom will these assets go? To public enemy number one: the wealthy!
Brussels breathed a sigh of relief yesterday. The parliament's vote was as critical to them as it was to Athens. Why is Greece so important? One needs to understand that the IMF and members of the EU have been sending funds to Greece so that it can pay its debts. This, by the way, explains why it is not only the Greeks who are furious, but also the Germans and French, who cannot fathom why they are paying the Greeks' taxes.
EU financial community leaders support Greece, however, because they know that if Greece falls, other weak nations in the eurozone, such as Ireland and Portugal, would soon follow. Let us not forget Spain has an estimated unemployment rate of 19 percent, double the average of other eurozone countries. Its no surprise that New York University Professor of Economics Nouriel Roubini, who prophesied the economic recession in 2008, is quite pessimistic about the eurozone.
But that's just what happens when 17 nations decide to bind their fates together.
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