GREEK CRISIS – A NEW BEGINNING OR THE BEGINNING OF THE END?
A debate on the consequences of Greece crisis between Bulgarian researcher Nikolay Anachkov and Italian research coordinator Pietro Celotti
venerdì, July 2nd, 2010
Eurozone represents the second largest economy in the world. On the first decade of existence Euro became the second largest reserve currency after the U.S. dollar and surpassed the U.S. dollar’s circulation. The Euro appeared to be very strong, so it is understandable that when the debt crisis started to affect the Eurozone, Member States' citizens reacted differently. If some of them truly believe that European Union is a powerful organisation and the crisis will pass, others can already see the end of the Union.
Nikolay Anachkov: In 2009 it became clear that something in the Greek financial system is not so all right. Actually, Greece’s economy has not been in balance for years, but everyone in the European Union preferred not to raise this question, maybe hoping that it should solve all by itself. It would be very nice if that happened, but as we know, in real life things like this never happen. If you want to cope with some problem you should try hard to solve them. But what European Union did was just the opposite.
Pietro Celotti: I catch your personal disappointment but it seems necessary to focus on the actual institutional responsibilities. It is right that Eurozone was seriously affected, but Greece’s debt crisis was produced mainly because for some years they have covered up their bad economic performances by officially presenting better economic figures than it was the case. Although the Commission has the responsibility for monitoring statistical data, they do not directly compile statistics or control their production, but it depends largely on the data compiled and reported by the member states, as well as the administrative ability, good will and loyal co-operation of the respective national authorities. In this sense, European Union could not intervene with objective measures, even if the reliability of Greek government deficit and debt statistics has been the subject of continuous and unique attention for several years.