Tag Archives: Germany

From austerity to Ottocracy: Rehhagel’s return

Illustration by Manos Symeonakis

Illustration by Manos Symeonakis

Otto Rehhagel has proved throughout his long career as a soccer player and coach that he has many qualities. Diplomacy was never one of them. “Everyone’s free to say what I want,” he once told journalists. His tendency to gradually assume total control of the German clubs he managed even merited its own term – Ottocracy.

Yet, at the age of 74, Rehhagel is being called on by his homeland to show tact and sensitivity on a mission to Greece, which was his adopted home between 2001 and 2010 when he coached the Greek national team. Bild newspaper provided the rather surprising news on Wednesday that German Chancellor Angela Merkel had chosen Rehhagel to go on a goodwill mission to Athens in a bid to give relations between the two countries a boost and ensure that German tourists give the Greek economy a lift over the summer.

Although Rehhagel will reportedly meet with President Karolos Papoulias and Prime Minister Antonis Samaras during the visit, his assignment appears to be the latest attempt at low-level micro-diplomacy between Germany and Greece.

Continue reading

The Greek crisis: an economic problem, not a moral quandary

Like clockwork, crucial talks between Greece and its lenders have been prefaced by a gaggle of European politicians questioning Athens’s commitment to its bailout targets and its place in the eurozone. Accusations have ranged from a Greece being a “bottomless pit,” to the government, in place for about two months, lacking the will to implement the troika’s program. There has even been a suggestion — if reports are correct — that Athens has failed to cut wages and public spending.

Misdirection, misinformation and downright lies have never been in short supply since Greece’s debt crisis began. Some of the recent comments about Greece have slotted into this regular pattern. Greece can be justly criticized about the slow pace of reforms but there is no basis for raising doubts about its efforts to meet — albeit haphazardly — the fiscal targets set by the European Commission, European Central Bank and International Monetary Fund.

To suggest that Greece is in a constant struggle to meet the troika’s fiscal goals because of indifference rather than due to the deteriorating state of the economy or because of the political difficulty of passing unprecedented — by eurozone standards — austerity measures is pure subterfuge. There is little evidence to back up such a claim. Even a cursory glance at the economic indicators proves that Greece has cut both wages and public spending. It may have fallen short in other areas, but in terms reducing expenditure, there can be no doubt that Greece is doing its bit.

Continue reading

Europe’s fiscal pact: The final irony?

Illustration by Manos Symeonakis

Last Friday, December 9 — the day when 26 of the European Union’s 27 leaders agreed on a “fiscal compact” designed to save the euro and place the bloc on a sounder economic footing — marked exactly 20 years since Germany and France presided over a similar meeting that led to the drafting of the Maastricht Treaty, which became the cornerstone of the single currency.

Among the euro entry conditions agreed in 1991, a country’s public debt would have to be limited to 60 percent of gross domestic product and its deficit to 3 percent of GDP. The first countries to breach the deficit rule were France and Germany in 2003 but they voted to let each other off, thereby undermining the rules that they had been instrumental in drawing up. So, there is more than a hint of irony in the fact that two decades on, France and Germany are again at the forefront of pushing for strict budget discipline, this time as a way of keeping the euro from falling apart.

Continue reading

Greece – a year in crisis

Examining the social and political impact of the austerity programme the Greek government embarked on last year, for the German think-tank Friedrich Ebert Stiftung.

http://library.fes.de/pdf-files/id/ipa/08208.pdf

Et tu, Obama?

Illustration by Manos Symeonakis

Having seen the caliber of some of the Republican Party’s presidential candidates, it’s hard not to want with every fiber in your body for Barack Obama to succeed during his first term in the White House. But this week, thanks to the comments he made aboutGreeceafter meeting German Chancellor Angela Merkel, it was difficult not to feel respect for the American leader slipping away.

The headlines after the two politicians held their news conference inWashingtonrevolved around Obama and Merkel’s warning that the Greek debt crisis could bring the world economy to its knees if it’s not tackled properly. “America’s economic growth depends on a sensible resolution of this issue,” said Obama. “It would be disastrous for us to see an uncontrolled spiral and default inEuropebecause that could trigger a whole range of other events.”

Continue reading