The Greek Issue

The epicenter of the European crisis is Greece.  Greece is a small country with people who are very proud and set in their ways.  They can be enterprising, astute, and clever all at the same time while also feeling like the man is out to get them.  The fact that there has been a prolonged period of time in which their ancestors were under oppression by the Turks for four centuries has instilled an attitude of don't trust anyone in authority because chances are they are out to get you.  It is with this attitude that the Greek nation has entered the European debt crisis.  The chain of events has been predictable.  The EU says that austerity is the key to funding Greece, the greek government passes laws that cut wages, pensions, and jobs while increasing taxes, and the greek people then strike or protest only for the cycle to reoccur. 

The problem with this lies with Greece's form of government.  Greece is a democracy and as such the ruling party must have a coalition forming a majority in parliament.  Papandreou's parliamentary majority is razor thin right now (155 out of 300 seats) as there have been defections as the crisis has grown.  How many more defections could there be?  If Papandreou loses his majority then he will be forced to call new elections.  With neither Papandreou's PASOK or the opposition New Democracy party very popular right now it could open the door for more extreme elements to take power which can throw a wrench into the support for austerity measures which the EU is demanding.  This is why, no matter how much progress the government is making  to avoid default the question should not be if the government is willing to make the sacrifices but rather if the Greek people are.