News and Events

Austerity Measures and Strikes

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Greek bailout …

Members of the Eurozone are again being asked to bail out the ailing Greek economy. Aid of 110bn euros was agreed last year and the details of a further 120bn euro bailout are being drawn up. The indications are that the Prime Minister’s argument that the UK should not be required to contribute has been accepted. The bailout will be funded by the 17 members of the Eurozone rather than by all 27 EU nations. (David Cameron cannot rely on a veto because the decision is subject to qualified majority voting rules.) Nevertheless the UK is likely to contribute, via the IMF, to loan guarantees for Greece.

Of course, financial support on this scale does not come without conditions and the Greek government is required to introduce austerity measures as another tranche of the agreed aid is released. Those austerity measures have been met with protests, riots and strikes. And those protests, riots and strikes will further damage the economy leading, one assumes, to further austerity measures and then to…?

We are fortunate in the UK that no-one would be so short-sighted, self-destructive and plain daft as to inflict that sort of damage on our economy when the government is struggling to balance the books. The sun shines as we all head to work this morning to do our bit to support ourselves, our families and to get our country back on its feet!