PCMLE: Economic crisis in Greece destabilizes the European financial system

En Marcha, May 4, 2010

Greece with its small crisis could be the straw that breaks the camel and cause a new general decline in stock markets in Europe and the world.

EUR 300 billion is external debt of Greece, however, support the “Eurozone” will be over 100 billion euros. A huge injection of resources that attracts attention.

The reason is to save the system, not Greece.

The interest of countries like Germany and France is to avoid spreading across the economy is stabilizing than just the latest crisis, and this problem in the context of the huge European economy is really small, does not become the spark to burn down the whole system again.

A few weeks ago that level of “help” was not recognized by the European Community, it was only possible if “the Greek treasury could not meet the deadlines” and that happened, which led, as expected, down from European shares arising due to the mistrust that is to keep it from spreading to other countries with budget problems, such as Spain or Portugal.

For its part, Greece could hardly address the problem. With enormous effort can bring to Greece just a little over EUR 6 billion this year. This provides an example of the magnitude of the problem.

There is help for the people, are resources to “reassure the market”, ie will banks, financial institutions, international creditors. However, who must tighten their belts it is the Greek people. His reaction is right: strong protests, strikes, strikes. Are right, the money was never invested in them, plus they are not consulted on how to get out of the problem. Only download on them the burden of the crisis. Public employees have seen their wages reduced by 20% and increased retirement age, while being announced several measures that are to alleviate the crisis but to beat the people.

Where will the money? Will the European Central Bank. Say the news will have no impact on the economy of other countries, which is untrue. Have an impact, not so much the amount as by the accumulation of inorganic emissions were forced to do the central banks to address the crisis of 2008. This drop may spill the cup.

But help is not guaranteed. There are voices that arise out of Greece to the Community for several reasons: the lie by making up documents with the interest in joining, the Euro’s own health would be more committed to this situation, the vision of northern Europeans who have prejudices against Southern Europeans.

Financial speculators are also in the game. Perhaps because they learned that in these situations is when more profit can be obtained. This happened in the crisis of 2008. The “freedom” of the system offers the opportunity to leave bankruptcy in whole countries and peoples, while filled with money as he could. Things of savage capitalism.


Published by Victor Vaughn

Anti-revisionist Marxist-Leninist, National Secretary of the American Party of Labor (APL).

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