Greece, the euro, and patience

17 February 2012

The current woes for Greece and the euro continue unabated, and worryingly, patience from all quarters and time are running out. The eventual outcome may be that Greece will be out of the eurozone. It may be that Greece and the Greek people have enough of the austerity, choose to default, and abandon the euro. It may be that other eurozone members no longer wish to save Greece, and force Greece out of the single currency. In either case, the terrible economic predicament for the Greek people will continue and will continue to worsen. There seems to be no light at the end of the tunnel. It is dark and bleak, and there is no hope.

No one involved in this issue seems to have patience. The IMF and the EU want concrete and drastic measures implemented now, however painful and miserable their effects may be. Other eurozone states, such as Germany, the Netherlands and Finland, may refuse to keep on bailing out Greece. It’s not only the politicians who are losing patience, but the voters in these countries are increasingly disgruntled about Greece, and the problems it is causing to their currency, banking and economy. The voice to eject Greece out of the single currency will only become louder. Greece needs to act now, in order to avoid defaulting on its debts, but the severity of the policies so far has led to mass protests. People may be losing patience, as well as faith, about the rescue package and those behind it. The markets are impatient and call for action, and look on nervously, unsure what is going to unfold next. There is no patience, because there is no trust.

The current situation looks unsustainable. Even if a deal is made now, Greece is likely to require further aid down the line, and it is likely to become increasingly problematic for everyone concerned. Other European countries will demand more drastic measures, and a stronger oversight over the process, which will only result in increased resentment in Greece.

An end to Europe’s severe crisis is not in sight: this is going to continue for some time to come.