The votes are in

Photo taken from BBC News

The votes are in for Greek’s May 6th election. New Democracy leads with 58 seats and left-wing party Syriza came in second with 52 seats.

New Democracy is awarded an extra 50 seats for coming in first which totals to 108 seats in the parliament.

New Democracy together with Pasok are supporting the bailout that comes with austerity.

Alexis Tsipras, leader of Syriza, instead called the terms of EU/IMF bailout deal as “barbaric.” He wants try to form a coalition that is against the austerity measures.

Currently, there has been no success on coalition talks between pro-austerity parties, New Democracy and Pasok.

According to New Democracy leader, Antonis Samaras, Tsipras proposal to forego the bailout terms could lead to Greece’s exit from Europe.

Euclid Tsakalotos from Syriza who is the newly elected member of parliament, said Germany should come up with a plan similar to the Marshall Plan. The Marshall Plan helped rebuild Germany after World War II.

“The eurozone is going to collapse not because Greek leftists have said we’ve had enough of austerity and we can’t have wages of the level of Bulgaria when we have prices at the level of Berlin; it’s going to collapse because of these austerity measures,” Tsakalotos said.

This is a sticky situation for Greece. So many ideas, plans, and proposals have been thrown out to make the financial situation for Greece better, but who knows for sure which is the best solution.

Many international critics are for the austerity measures with the same beliefs that if Greece do not stick to austerity, it would leave Europe.

But, the leftist and most Greeks are not for the austerity measures and that has caused social unrest in Greece.

Samaras will have one more day to put together a coalition or another election would have to called.

A guide to Greek political parties participating in the upcoming election

The Greek election is around the corner. With only four days away, Greeks will have 32 parties to pick from to enter parliament.

Here is a guide to three main Greek political parties which are likely to win seats in the parliament, compiled by Al Jazeera:

New Democracy (ND)

New Democracy is Greece’s main centre-right party which joined PASOK in November 2011 in a ruling coalition. Support for ND has decreased since it united with PASOK.

ND now partners with PASOK in an interim government in making sure Greece is keeping its austerity plans after receiving bailout from Europe and and the International Monetary Fund.

ND is set out to win more votes than any other party, with between 20-25 per cent of Greeks planning to vote for it. Many expect ND leader Antonis Samaras to become Greece’s next prime minister.

Panhellenic Socialist Movement (PASOK)

Centre-left PASOK  which is founded in 1974 currently holds more seats in parliament than any other party.

Not long after PASOK took power, they announced that Greece’s budget deficit was more than t the previous government had publicly claimed.

PASOK calls itself  a socialist party, but critics on the left have dismissed it as only a name for its support on austerity measures. Polls show that just about 15-18 per cent plan on voting for PASOK.

Communist Party of Greece (KKE)

Communist Party of Greece founded in 1918, is Greece’s oldest political party. It has historically played a major role on the Greek left. KKE holds to doctrinaire, Marxist-Leninist communism. It has ruled out working in a coalition with other left-wing parties.

Party leader Aleka Papariga has said the party support ”complete disengagement” from the European Union. It wants to abandon the euro in favour of Greece’s previous currency, the drachma. KKE has staunchly opposed the terms of the EU-IMF bailouts.

Support for KKE comes from Greece’s working class, especially in big cities and in industrial regions. Currently, about one in ten Greeks say they plan on voting for KKE.

The impact of austerity measures on Greece

If you had read my previous posts, I’ve mentioned a couple of times about the austerity measures that Greece has to abide in order to receive the large chunk of bailout money.

In this post, I’m going to discuss more extensively about the austerity measure and how it has impacted Greece economically, socially, and politically.

This austerity rule was set by Germany’s Angela Merkel who is the chancellor a.k.a president of the country.

Because Merkel initiated this policy, many Greeks have grown to dislike her and has eventually led to the belief that Greeks are angry at Germany as a whole.

German tourists are staying clear from Greece which is usually a common vacation destination for them. Reports have shown that pre-bookings for this summer from Germany have gone down to about 30 percent.

The West Australian paper reported online that a Greek tour manager of a leading tour agency said that Germans are hesitant to visit Greece because of reports about Germans being insulted and the possibility of strikes.

The drop in tourism is not a good sign for Greece economically because it is one of the country’s main income.

Recently, a mother and daughter brought the Greek government to the International Criminal Court (ICC) in The Hague.

They are accusing the Greek government of peacetime genocide and crimes against humanity.

They blamed the austerity measures that the government is implementing is harming their lives. The mom said the austerity measures are depriving them of their freedom. She explained that by taking away their income and property, they are restricted to access of shelter, food, health and education.

Her daughter added: ”Austerity is pushing Greeks not just below the poverty line, but below the minimum needed for survival.”

As a foreigner reading her statement, it sounded very dramatic. Were public spending cuts that deep? Even so, had the people always been depending on the government and have no personal savings? And they can’t survive because there is lack of funds from the government?

As for the economy in Greece, we all know that it is still struggling to come back.

Maybe the recent findings on fraud in pension payments could help with the country’s economy.

Greece has discovered that 200,000 of its people are receiving pension out of fraud. These people are either unentitled to receive the money or… dead.

It was calculated that 800 million euros will be saved a year from these pension frauds.

Greek town adopts an ancient way of obtaining goods and services

Greeks have returned to an old way of obtaining services and things – bartering. The Greek town of Volos, adopted a formal way of bartering which involves a currency called the Local Alternative Unit, or TEM in Greek.

With the recent economy crisis, this alternative is very useful and clever.

This system is excellent for those do not have the money but own something of value, or offer services. For example, farmers who have more produce than they need or could sell, they could exchange it for TEM, which they can later use to get services or other things.

The local farmer’s market at Volos allows people to get things using TEM. They can acquire handicrafts, vegetables, fruits and any kinds of item using their TEM credit.

One TEM equals to one euro. The barter system operates on an online network where they can post things they want or offer. The online network also saves your TEM credit which you accumulate from the things you had offered. The network is free to join and anyone can sign up for it on its website.

Several services members can offer and exchange for such as haircuts, baby-sitting, carpooling, and plumbling repairs for TEM.

Certain shops in Volos accept TEM credit. An optician accepts partial payment for glasses in her shop in TEM credit. She would later spend the credit in the farmers’ market.

Shops like these are forwarding and growing the barter system. They are also helping those who does not have money to be able to obtain what they need.

Instead of  flowing with the river of bad economy, the Greeks stood up and went against it. The concept of bartering is not a new concept and it’s hardly used anymore, but never would I have thought that it would return and actually help make bad times bearable.
BBC News: Greek town develops bartering system without euro

What’s next for Greece?

Greek Prime Minister Lucas Papademos recently announced Greece’s upcoming election. On May 6th, millions of Greeks will vote for a new parliament to replace the technocratic government that has been ruling Greece for five months.

Two major political parties, the socialist Pasok and New Democracy, are backing Papademos interim government and are hopeful to win. These parties together with Papademos had promised to continue to carry out austerity measures in Greece which requires cuts in spending in exchange for a bailout package.

Cuts in spending is not very well-received within the Greeks. Most of them are leaning towards the left- and right-wing fringe parties which are benefiting from the angry Greeks towards the present government for slashing public spending.

Papademos took over last November when former Prime Minister George Papandreou from the Pasok party, lost respect among the public and his own ministers. They were appalled and angry at the drastic cuts in public spending made by Papandreou. He later  found himself unable to lead effectively two years into his term. So, he was replaced by Papademos.

Papademos is a former banker who oversaw the currency transition from the drachma to the euro in 2002.

Since Papandreou had to leave because of his inability to govern effectively due to the public anger, I cannot help but wonder how are these major two parties are going to be able to win this next election.

If the other left- and right-wing fringe parties, fears are they might not continue to carry out the austerity measures that can lead to losing aid from the European Union and the International Monetary Fund.

What is going to happen to Greece? Will they ever come out from this mess? Hopefully the people of Greece will have the wisdom to elect the right people to govern them.

Leave or stay?

When your country is facing economical and financial problems, would you stay and help reform your country or look for greener pastures in another country?

Some people think it’s not worth to stay for they see no hope and future and would rather leave the country for another. Some wants to leave the country but has no capability to do so. They have no other choice  but to stay put and hope for the best.

In the midst of those who wants to leave the country, there are those who wants to be part of the rebuilding and reform of the country. They are the ones who breathe hope and endure the fight to bring their country back to stability.

Before I elaborate more on these groups of people, I cannot forget to mention the “special” group. This “special” group solves problem by removing themselves completely from the face of the earth. They eradicate themselves either to forever be removed from the problems of this world, or ensure their voice or thoughts be heard.

Greece currently holds such groups of people.

If you have been following up with news about Greece, you should be aware of the financial and economical crisis it has been going through.

Many recent graduates and young people in Greece are unemployed and some who has the chance to go abroad has chosen to leave and not return for at least a few years.

According to BBC News, research has suggested in 2010 that as many as 85 percent of Greeks studying abroad are not planning to return. 51 percent of young people are jobless.

I can see how those who has the chance to leave the country do not see the point of returning because there are better opportunities and privileges in other countries compared to what Greece can offer more to them. Those people who leave the country are usually educated and with money.

Besides those who wants to leave the country or had left, there is the group who eradicate themselves for reasons we may never truly know.

A man committed suicide in the middle of Syntagma Square in Athens today. The 77-year-old pensioner shot himself who left behind his wife and daughter. According to Kathimerini English Edition, his motive behind his suicide was financial insecurities. Before he shot himself he shouted, “I don’t want to leave debts to my children.”

I personally believe that the people should stay and help reform and rebuild Greece. If all the potential, skilled, and intelligent people leave Greece, how is Greece going to rise up again?

Greeks dissatisfied as government cuts public spending

It is impossible to please and meet the needs of every person. This statement presents what the Greek government is facing now.

In exchange for financial support to rescue Greece from going into default, Greece promised Europe and the International Monetary Fund that it will cut public spending as part of its austerity measures.

The public are obviously unhappy about the cuts. Elections are expected to be held in April or May, and most major political parties have to keep their word that they will pass cuts for public spending.

These political parties are struggling to get support from the people. It is understood that people still want to keep their privileges, but if Greece do not cut their public spending, what else can they cut?

Greece needs to cut its spending to manage its financial debt. If they don’t, the debt problem might never be solved.

Back in February, Greek Prime Minister Lucas Papademos said cuts in pensions must be done. A person who used to received 1,500 euros will get a reduction of 12 percent with amount above 1,300 euros. Cuts in pensions is just one of the measures taken to reduce public spending.

Lucas Papademos, who is also the former vice-president of the European Central Bank, became the prime minister of Greece last November. | Photo by Ralph Orlowski/Getty Images

According to the Wall Street Journal, half of the Greeks are choosing to vote for the opposition party because the current political parties will continue with the austerity measures in cutting public spending.

“Half the electorate plans to vote for radical opposition groups, ranging from Soviet-style Communists to anti-immigrant neo-Nazis, according to recent opinion polls. That could lead to growing political instability even if the established parties cling to power, undermining Greece’s ability to enact the drastic spending cuts and economic overhauls its creditors demanded.”

Papademos has been ruling as an unelected technocratic since fall of last year. He is supported by two parties, the New Democracy and the Socialists. These parties are the ones who promised Europe and the International Monetary Fund that they will continue with the austerity measures.

New Democracy’s acceptance of the bailout deal has caused reduced support from the Greeks. Wall Street Journal reported that the support of voters for this party is only around 25 percent.

Greece is facing much complications. The people are dissastisfied with the new cuts in public spending which might lead them to vote for an opposition party. If an opposition party wins the election, they might not follow up with the austerity measures that could put Greece in a very bad situation.

The domino effect of Greek debt crisis

As we know, Greece has been in a bad debt crisis and the international news is doing a good job in keeping up with it. Greece’s fellow friends in the European Union is doing all they can to save Greece from sinking deeper by working a deal with Greece on its second bailout from going into default.

Greece has finally received approval on its second bailout today from the Eurogroup, which consists of eurozone finance ministers, the president of the European Central Bank and European Commission chiefs.

It seems like many people are getting their hands into Greece’s mess and trying their best to clean it up. Why are they trying so hard?

Greece debt crisis is a complicated mess which can bring adverse effects EU’s economy and ultimately, the global economy. Greece is not the only country in the EU facing an economy crisis; Ireland, Portugal and Spain are in the same boat along with a few other EU members.

Looking at the bigger picture, Greece’s economy crisis combined with other factors could eventually harm the future of the euro currency. If the other EU members do not try to keep Greece in tact, a domino effect could ripple through Europe’s economy affecting its stability and growth.

Any country which choose to join the EU must agree to its fiscal criteria. One of the rules from the Maastrich criteria is a borrowing limit of not more than 3 percent of the country’s economy output.  Greece has been running on large budget deficits since mid-1990s and an internal audit was done in 2004 on Greece which revealed an “error” in accounting their budget deficit. Ashton Veramallay who is professor emeritus of economics at Indiana University East, said:

“The fact that the European Union had to offer financial support to Greece instead of collecting fines from the country for exceeding the 3 percent Maastricht limit on budget deficits also suggests that the current rules are not working.”

Greece is not the only one who broke this rule. In an article by BBC News, it discussed offenders of the Maastrich criteria along with the eurozone debt crisis. The first EU country who rebelled was Germany and the worst offender is Italy. Spain did well for many years but lost its “good-boy” status in 2008 when it was faced with a financial crisis. As for Greece, BBC News commented:

“Greece, by the way, is in a class of its own. It never stuck to the 3% target, but manipulated its borrowing statistics to look good, which allowed it to get into the euro in the first place.”

The EU is providing Greece help in order to keep economic and financial stability. The economy of the EU countries are interconnected and if one collapse, the others run a high risk of collapsing too. Veramallay wrote in his essay regarding the Greece debt crisis and concur it will eventually affects us all:

“Europe is the largest trading partner of both the United States and China, and a breakup of the euro zone or costly bailouts will have long-term consequences for the global economy and financial system. Ironically, austerity measures and credit-rating downgrades can be counterproductive by prolonging a deep recession.”

The United States is a long-time trading partner with Europe. US President Barack Obama said the eurozone debt crisis will definitely have an impact in the US. According to Obama, Europe is the States’ largest trading partner and their debt mess can affect businesses and their ability to create jobs.

With the newly approved second bailout, let’s hope there will be financial and economic improvements in Greece and Europe.

Tourism blooming despite crisis

When Thailand was going through riots caused by Thaksin’s Red Shirt supporters in 2010, their tourism was affected. Naturally, people would not choose a country undergoing unrest, as a vacation destination. Greece had been through a few riots in the past two years when the government announced its plan to cut public spending and raise taxes as part of their austerity measures. Amidst the economic problems and riots, people are still pouring into Greece.

Greece’s income stems mostly from tourism and shipping. Tourism in Greece is responsible for one out of five jobs and 18% of its gross domestic product (GDP). Tourism could be Greece only saving grace besides help from its neighboring pals to smooth its rocky economy.

Photo taken from allmedicaltourism.com

In May 2010, three people died from a protest when a bank was set on fire by a petrol bomb. According to The Guardian, tourists were not at all bothered by the demonstrations in Athens. Tourists were seen winding in and out of Syntagma Square, where protests took place.

Ansa Mediterranean, an Italian news publication, reported on March 5 that there was a 10 percent increased in foreign visitors over the past 9 months, accounting a total of 14 million visitors. But there are concerns for the coming summer to keep up with last year’s figures. Andrea Andreadis, president of the Association of Greek Tourism Enterprises (SETE), urged the Greek government to boost this sector fearing that tourists would stop coming with the mass negativity surrounding Greece because its debt crisis.

The government did take a step further to encourage foreign visitors to come to Greece. Two years ago, it stripped away visa requirements for non-EU citizens and relinquish aircraft landing and take-off fees.

Athens also hosted the Special Olympics in summer of last year. Figures show that it brought about 7,000 athletes along with 40,000 of their families.

I cannot help but wonder how Greece manage to host the Special Olympics for two weeks in a midst of a crisis but on the positive side, people were coming into the country which I’m sure generated income for Greece.

Greece need to continue to improve its tourism to attract and encourage more visitors. It is imperative for them to do so because it may help lift some of the debts they are facing.

Greek health care system on the edge of disaster

2012 is the fifth year Greece is in recession. How are the Greeks coping with the economic downturn? Many would agree, not very well. Riots on the streets and rising unemployment are only some of the frustrations facing the Greeks. Health care in Greece has been affected pretty badly too and its people are suffering the consequences.

With austerity measures, Greece needed to cut its public spending which took the toll on health care. Hospitals are lacking critical supplies and people are unable to afford paying for doctors’ fees.

Free clinics once visited by migrants are starting to see Greeks coming too. The government used to have an extensive health care system which made sure its people were covered without needing to worry about paying anything.

The Medicins du Monde clinic in Perama sees about 90 patients a day. | Photo taken from BBC News

Under the new system, Greeks are required to pay €5 to see a doctor and 25 percent of the medical bill. The rest will be paid through social security. Many who are unemployed would not be able to pay especially those who have been not working for a period of time, because their social security would have ran out. The doctors volunteering at the clinic in Perama had seen patients who cannot afford bus fares, let alone the 5 euros to see a doctor. The clinic which offers treatments at no cost, saw a growth of patients from 8 percent to 30 percent in four months.

In December 2011, Greek doctors in hospitals reported supplies such as toilet papers and syringes were lacking. Some broken computerized equipments were yet to be repaired. Nurses had four times more patients under their wings than they should. Drug supplies were also affected as the manufacturing companies were no longer willing to supply Greek hospitals. The health care quality in Greece had no choice but to endure alongside its wrenching economy.

On Feb. 28, lawmakers voted 202-80 to cut government spending in pensions and health care in keeping line with the 2012 budget. With more cuts in public spending, the people who once enjoyed financial support from the government now has to readjust their spending, but it is the poor who will suffer most.