Tag Archives: stability and growth

Sovereign territory

Illustration by Manos Symeonakis

“Sovereignty is rather like virginity: You either have it or you don’t,” a wise man told me some years ago. If this is the case, then, in an age when sexual morals are more lax, it seems fitting that there are only few, if any, states that can truly claim to be sovereign.

For the last few decades, a number of transnational factors — capital, migration, environmental degradation, communication, technology and even terrorism — have chipped away at states’ sovereignty. Rather than a case of “wham bam thank you ma’am,” it’s been a series of long, complicated dates that have led to the same, inevitable outcome.

Of course, there are still moments when sovereignty can be lost in a flash — for example, when Haitian Prime Minister Jean-Max Bellerive last Friday transferred operations at the airport in Port-au-Prince to the USA to speed up the earthquake relief effort. The scale of the disaster that hit the Western Hemisphere’s poorest nation meant that Bellerive had little choice than to put his faith in the Americans. Nevertheless, handing control of your country’s airport and air space to another state is a landmark moment when one assesses the withering sovereignty of nations.

Greece is inextricably linked to Haiti, as the island state was the first to recognize the Hellenic Republic as an independent country in 1822. But over the past few days, the two countries have had something else in common: Greece also saw its sovereignty vanish, albeit under less horrific circumstances.

While preparing its Stability and Growth Program, which was officially presented to eurozone members on Monday, Greece essentially gave up control of its economy, and therefore its sovereignty. The measures that Athens intends to adopt as part of the four-year economic recovery plan were written here but they were dictated from other European capitals, even though the onus is on Greece to solve the problem on its own. “It would be wrong to presume or let Greece presume that the other countries could solve its problems,” said Luxembourg Prime Minister Jean-Claude Juncker, the chairman of eurozone finance ministers or Eurogroup.

The death stare that Juncker fixed on Finance Minister Giorgos Papaconstantinou during Monday’s eurozone meeting was both humiliating and frightening. It was confirmation that Juncker, a career politician who has been at the heart of EU developments for many years, intends to watch the Greek government like a hawk. But he won’t be satisfied with just monitoring Athens’s movements. He’s already shown he’ll test the limits of Greek sovereignty. It was Juncker, rather than Papaconstantinou, who last week got in touch with International Monetary Fund (IMF) Chief Dominique Strauss-Kahn to discuss whether Greece could use some financial help. “We think IMF assistance to Greece would not be opportune or welcome,” said Juncker after the chat.

“It’s nice of him to let us know,” the Greek minister might have thought. Well, he’d better get used to it because Juncker won a fresh 30-month mandate as the Eurogroup chief on Monday and the 55-year-old is the kind of technocrat who believes Europe’s strength lies in closer integration, a concept that allows little prospect for EU member states to make decisions independently. In a letter circulated to the eurozone finance ministers this week, the Luxembourger said he wants the Eurogroup “to pursue broader economic surveillance” of its 16 members. Greece’s recklessness and untrustworthiness means other countries could soon suffer the ignominy of outside interference in their economies.

Getting its figures right, cutting costs and generating revenues were never Greece’s strengths — but even so, relying on its European friends to prescribe a way out of this mess seems a high price to pay. It’s difficult to know what’s more galling: the fact that Greece’s ministers are being hauled before Juncker and similar EU officials like errant schoolboys or that it’s now been confirmed in black and white, in page after page of reports, that Greeks are truly incapable of exercising their sovereignty.

If we are to take anything positive from this sobering experience it’s the hope that our European partners have a better idea of what to do than we ever did but, more importantly, that we now have a chance to regain trust and rebuild confidence. Although there are many trials and tribulations that come with a loss of sovereignty or virginity, a loss of dignity will always be more painful. But, unlike virginity and possibly sovereignty, dignity can be restored.

This commentary was written by Nick Malkoutzis and first appeared in Athens Plus on January 22, 2010.