Sir, – The ultimate test of any community is how it treats its weakest. Most of the commentary on the Greek crisis has been focused on the economic consequences of a Greek exit from the euro. If it happens the fallout will be political, as well as economic. Throughout the EU it will be clear what kind of “community” we are part of. What the consequences of this will be, only time will tell. – Yours, etc,
EUGENE HORGAN
Dún Laoghaire,
Co Dublin
Sir, – It was generous of you to publish the views of the Greek finance minister in Saturday’s edition, if only to provide some balance to the cheerleaders for the European banking system led by the ECB (“Yanis Varoufakis: A pressing question for Ireland before Monday’s meeting on Greece”, Opinion & Analysis, June 22nd).
While Mr Varoufakis undoubtedly crafted his comments carefully to evoke some sympathy from a people who have suffered a degree of the humiliation which the Greek people are having heaped upon them, he does make some very honest comments about past mistakes and the need for serious reform. He also points to the severity of the measures which have already been introduced, some by choice and some by external pressure.
The most worrying factors are the source and extent of the external pressures being exerted on this already impoverished member state of the European Union, or the European Economic Community as it was originally called. Where is the sense of community now? We in Ireland should remember our reasons for joining this community and yes, appreciate the benefits we have reaped, both economically and socially for most of the 42 years since we became members. However, we should not forget our treatment at the hands of the agency of the union, namely the ECB and other financial agencies external to the union who have only the protection of the banking system in their remit.
Mr Varoufakis points up the democratic deficit in the dealings of these agencies with the most senior elected representatives of the member states, with the notable exception of Germany, which maintains a right to review and effectively veto any agreements which might prove detrimental to its beloved banking system.
If the Greek people are to resist, as they did quite effectively in the past, it behoves us to abandon our neutrality in matters which have impacted so disastrously on many of our own people. As we have come to learn quite recently, our acceptance of bailout terms (which appear almost generous compared to those on offer to Greece) would never have arisen had we had the courage to burn the banks.
It was banking mismanagement, more than government mismanagement, which led us and our Greek fellow-citizens to this pass. Desmond FitzGerald (June 20th) offers the correct solution to the crisis created by banking debt and that is to remove bank-related debt from member states’ balance sheets and restructure that debt through euro bonds, guaranteed by the ECB. This is the function for which the ECB was established, not to act as the heavy for Wolfgang Schäuble and some other EU finance ministers. – Yours, etc,
RORY O’GRADY,
Shankill,
Co Dublin.
Sir, – Commentators appear to overstate the importance of the June 30th “deadline’”for the Greek debt negotiations.
Under the terms of the IMF’s internal procedures, it can take up to one year before a country can be declared in default to the IMF following an arrears incident. Although new IMF payments to Greece may be immediately suspended, the ratings agencies have said they will not immediately consider Greece to be in default.
Therefore the ECB would appear to lack any legal grounds for immediately considering Greece insolvent, or withdrawing emergency liquidity assistance. That eventuality may not arise until Greece is obliged to repay €3.5 billion to the ECB on July 20th. – Yours, etc,
TADHG LATERRIERE,
Toulouse,
France.