Senior Partner Blog

The moment of truth is here. Unless the Eurozone leaders now conclude that Greece is now eligible for the next rescue package, the collapse seems unavoidable. At the same time the riots on the streets of Greece continue – people say that they have had enough of austerity measures. And who can blame them. Many feel that they are paying for somebody else’s financial mismanagement. Which is to a large extent true. But that comes with the territory, literally as well as a figure of speech. Greece is a country and has problems which affects its citizens. A bit like when children suffer from wrongdoings of their parents, even if grown up citizens can vote out their leaders, an option which is not available to children. So is this fair? Perhaps not, but difficult to avoid and life is not fair. Because if corrections are to be made, somebody else has to pay for it which in turn could be said to be unfair – what have the citizens of the Netherlands, Belgium and Estonia done to deserve liability for the Greek debts? Sure, support from others may at times be desirable and reasonable but it is hardly a given. When the Greeks are protesting including some of their leading politicians, they may want to think about the alternative. The terms of the lenders may be too harsh, so don’t take the loan and live with the consequences. But I think it is somewhat provocative to simply take it for granted that someone else is paying. Then again, spending other people’s money (OPM) seems to be a popular game everywhere.