Monday, 21 May 2012

Its about people, not money..

Two great pieces on the euro: Boris Johnson in today's Telegraph and Janet Daley in the Sunday version are well worth reading, as the fate of Greek membership is now in the hands of the Greek people, who go to the polls on 17th June. Meanwhile, the EU will continue to bully and cajole them into giving the answer they want..

But one inescapable truth will continue throughout the coming disaster - and as Iain Martin writes, we should be under no illusions that whatever transpires will be a disaster - no matter what is imposed upon or rejected by the Greek people, it is only money. The Greek people and their country will survive. And the sun will continue to shine upon the beautiful Mediterranean nation that gave us the greatest civilisation of the ancient world. Only after writing off all its international debts - most of which are owed to northern European banks which Merkel and Sarkozy so desperately tried to protect - and becoming a pariah state in financial terms, whilst reverting to a devalued drachma, will the people of Greece begin the long process of rebuilding an economy destroyed by the euro.

Almost immediately those shops, hotels, restaurants, bars and cafes will become the cheapest destinations - and some of the most beautiful - in Europe. Albeit at a lower level of revenue than under the euro, the people of Greece will once again find tourists returning and with them a demand not seen in the last five years of recession and austerity. As Ambrose Evans-Pritchard writes, it is possible – perhaps likely – that Greece would be growing briskly again within 18 months, led by a tourist boom and by import substitution as local manufacturing rebounds. Then employment, national pride and a viable economic future will return.