Wednesday, June 29, 2011
Making the Argument for Greece’s Austerity Plan
New York Times
June 28, 2011
The Greek Parliament is prepared to vote on austerity measures on Wednesday, and its people have been gathering in demonstrations and strikes to protest the cuts. Here is an open letter explaining why members of Parliament would be crazy to vote no:
The anger you feel about your plight is understandable. You are staring at several unpalatable options, all of which will involve big cuts in living standards for years to come. But the choices are not equally bad. You must avoid an emotional reaction that leaves you in an even worse state. And you should ostracize those who resort to violence.
One option is to persuade your politicians to say no to the austerity plan set forth by the euro zone and the International Monetary Fund. That proposal is not perfect. But rejecting it outright would be childish.
If there is no agreed plan, you will get no money. The consequence wouldn’t be just that the government defaults on the loans it took out on your behalf. There would be a run on your banks and an even deeper recession. You would probably also lose your remaining friends in Europe.
Posted by Yulie Foka-Kavalieraki at 10:40 AM