Sunday 27 September 2015

Witnessing the unenthusiastic re-election of Syrzia

I managed to get to Greece last week to do my bit for the Greek economy. I have always enjoyed going to Greece, and all the cliches about the friendliness of the Greek people, the welcome in the tavernas, the ancient history and the sheer beauty of both the mainland and the islands are true.
There is no doubt that many of the current problems Greece experiences were self inflicted. The culture of tax avoidance was (and still is) endemic and the public sector is bloated. Every time any Party tried to do the tiniest thing about this, they then got voted out by the Greek electorate and replaced by their opponents who in populist form suggested reform was not necessary.
However there is little doubt that the straight-jacket of the Euro is the primary reason for the continued economic pain. The figures were fiddled to allow Greece to join, and the consequence is that they are locked into an exchange rate completely inappropriate for their economic situation.
Remarkably Syrzia managed to get re-elected whilst I was out there. This was despite totally failing to end austerity and agreeing to a bail-out deal even more regressive than the one they had earlier rejected. 
It seems to me that the two main parties, Syrzia (now) on the centre left and New Democracy on the centre right are engaged in a Faustian pact. Syrzia are bottling public sector reform and ND are bottling agricultural and tax reform - but both agree on staying in the Euro. So although as they now seem destined to achieve just above or below 30% of the vote each, the turn-out in Sunday's election was down to 52% - reflecting more public indifference than anger. 
The old fashioned Communists (sorry if I had an effect by highlighting their posters) got 5%

while the attractively named (for me anyway) Union of Centrists got seats in the Parliament for the first time.
I cannot see how the Greek economy can recover unless there is debt relief. Bail-outs just add to the debt, making it impossible for any Greek Government (left or right) to balance the books. 
But at least the EU flag flies proudly - even at the ancient cave of Loizos. 

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