The danger of handout promises
The way things stand right now, Greece is looking at a number of serious dangers that are looming just around the corner, as certain political parties and union groups are increasingly encouraging extreme forms of protest, such as the farmers’ blockade of the national highway. In turn, some government officials who fear the likelihood of having to go to early elections appear ready to dole out everything they have to a small number of sectors in the form of subsidies, pensions and other benefits, while main opposition PASOK is going overboard with its talk of handouts. This phenomenon is growing to very dangerous proportions and could very well drag the country into troubled fiscal waters – right in middle of a global economic crisis and at a time when the Greek state is continuing to borrow on unfavorable terms. If we want to avoid being dragged into such a crisis, the Finance Ministry must practice centralized economic policies and the government must display a modicum of political courage.
