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Greece: A Greek tragedy? - Stewart Andersen

A Greek tragedy?

I love Greece. There’s nobody happier than me when, with the scent from a grill torturing my nostrils, I’m sitting on a pine-shaded terrace enjoying bowls of houmous, tzatziki and taramosalata, grilled halloumi, a wonderful salad and a plate of saganaki and all washed down with a robust red wine. Of course, the terrace should be facing a beach with the Mediterranean lapping the shore and with a 14-foot boat plus outboard tied up to a jetty.

I love Greece for all its many good points which as a tourist, I enjoy and then, having returned to the UK, I sit at my desk and think longingly of the next time I can head east to yet another Greek island.

I mention the good points but sadly they are plunged into the deepest shade by the terrible plight of the Greek economy.

Whether the recent agreement between German Chancellor Angela Merkel and France’s President, Nicolas Sarcozy (please note, there’s been no mention in all of this of that well-known knock about double act, Brown and Darling) can actually resolve the situation and whether the IMF and the rest of the EU joins in, it’s worth taking a moment to reflect on just what could happen if the Greek economic crisis is allowed to balloon out of control.

The tsunami of financial problems that could swamp Europe would be horrendous. Portugal’s credit rating has recently been downgraded (and there are plenty of rumours that Britain could be next) and this might just be the first sign that the monetary virus is beginning to spread. Spain, Italy and Ireland aren’t feeling too financially bright at the moment either.

And Greece is severely in breach of the rules and regs of EU finance that demands that countries all keep their deficit below 3 per cent of GDP. The figure that Greece has managed to achieve is 12.7 per cent.

And, of course, any Europe-wide crisis would have to affect battered and bruised overseas property owners. For Brits, with the pound acting as though all hope had gone, life in the last two years has become unbearably expensive. We spent 10 days on the Greek island of Paxos last September and found that where we’d have paid £10-15 per head for a taverna meal a couple of years before, we were into £25-30 per person.

It makes you shudder if you apply that kind of inflation to all the other day-to-day costs of living, which is why it is to be hoped that this solution does stick. There are plenty of British second homeowners throughout Europe and the last thing they need is another crisis on top of all the problems of the last 18 months.

Of course, being given your medicine by the IMF is not at all pleasant. The International Monetary Fund beats hard-hearted, Scrooge-like bank managers hands down. Based in Washington, the IMF deals out funds with the most parsimonious of tight fists.

Back in the 1970s, Britain had to hold out the begging bowl to the IMF and each time the then Chancellor went to the international organisation to say: “More please,” he had to produce proof that the targets set up by the IMF had been met. No targets reached, no money.

It is to be hoped that EU countries will sign up to the rescue plan that is said to total some £21 billion. It could be possible that Europe will act sensibly and that the Greeks will accept all the conditions that will doubtless be imposed such as increased taxes and pay cuts or pay freezes.

I don’t think they have much choice. Of course, Britain isn’t part of the Eurozone but according to UKIP, the UK pays into the EU £40 million per day and if that’s true, you can bet your bottom dollar some of that will find its way to Greece.
And in a way I hope it does. I’d dearly like to be able to go back to that idyllic terrace once again.

Stewart Andersen

Stewart has worked on a variety of magazines for more than 20 years as a journalist and editor, usually specialising on property and travel, both in the UK and overseas. His first book ‘Wild Thyme in Ibiza’ was published recently and this year he launched Homes & Travel with Stewart Andersen

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