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Elitsa Tsenova, "Bulgarians in Austria" magasine

Exclusively of GRReporter

"Well, the Greeks finally have taken a drastic decision. They will probably make it." These were the words of Michaela Weiss who met me at the neighbourhood school on June 30 –  a day after the Greek Parliament adopted the package of measures for avoiding bankruptcy proposed by the European Union. We have been waiting with her the end of our children’s classes for several years. We talked about the teachers, the social and educational system long ago. For almost a month now, we have been thoroughly discussing the crisis in Greece. Michael is a 35 years old energetic and educated woman working in a small company for advertising services and has two children. She likes Greece, she was there on vacation and loves the olives - "just such big and black," she is making a circle with her thumb and forefinger. Now, she is unable to understand why and what is happening in the Greek country.

If most of the economic analysts and political elite have been aware of the debt crisis of Greece, it has been almost a shock for the average Austrian. Despite what is happening in Ireland, the fears of Spain and the concerns of Portugal, which were present in the press occasionally, it has never happened to an established EU country to fall into such a heavy financial collapse. The fact that this refers to a member of the euro area makes the situation even more dramatic.

Austria is among the disciplined members of the European Union and one of the countries, which derive most benefits from its participation in the euro area. Although they are not many, but there still are conservative citizens or supporters of the far-right Freedom Party, who claim that, the EU is an unnecessary "occupation" violating the constitutionally strengthened neutrality of the country. The Alpine republic is notable for its financial stability, high credit rating (AAA), low unemployment and social stability. It was among the countries the global economic crisis affected the least and it managed to recover relatively quickly and painlessly.
 
AUSTRIA’S WARNING
When it became clear in late 2009 that the situation with the Greek finances was much more tragic than anticipated, Europe embarked on the search for measures to prevent the debt crisis of the country. In early 2010, giving promises of structural reforms and budget cuts, Greece managed to sign a memorandum of financial support with the European Central Bank, the European Commission and the International Monetary Fund. Even then, Austria stated it would expect the island country to be more active and take substantive measures to comply with the agreement. Days before the vote on the third installment of € 9 billion, the Alpine republic was the first major country of the European Union to say "stop" to the Greek indecision and inability to take drastic measures. On November 16, 2010, the then finance minister Josef Pröll warned that Austria could refuse to support the granting of another tranche in December, since Greece does not meet its obligations.  At the end of last year, our southern neighbour started with a long delay the unpopular measures that led to protests and riots in the streets and squares of the cities. There appeared the first unpleasant comparisons with the situation in Argentina in 2001.

IMPATIENCE AND ANGER
"Obviously, the Greek government has spent a lot more money than it could collect from taxes," thought Michaela sometime in early May, when the first data on the generous social policy in Greece, the ineffectiveness of the public sector, tax evasion and corruption appeared. Gradually, her liking for the islands, the blue and white houses and olives began to melt. She knew that the Greek crisis would cost more than € 2.3 billion to Austria. "When they took the big bonuses they did not ask where the money came from, and now they are protesting," she resented the thousands of protesters in front of the Greek Parliament. This was the dominant mood in the online forums of major Austrian newspapers. The fact that in 2001 Greece has misled the European Union on its willingness to meet the requirements for accessing the euro zone actually increased the fears of many Austrians. Could the southern country make another financial trick to hide its growing internal debt, which is 160% of GDP? "Even if people stop eating, shopping and spending and give all the money they earn for debt repayment, they would need at least two years – calculated the advertising specialist quickly. – However, this is impossible to happen! They will have to give up lots of extras. "

The growing protests in Athens, the pressure from the European Union for actually taking drastic measures to cut the budget and raise the taxes, the comments on the millions of euros the European Union taxpayers should pay were the central headlines of Die Presse, Courier, Kronen Zeitung and other media in the Alpine country in June. The negative attitudes towards those who were protesting in the streets "instead of working" prevailed over those who tried to explain that the reasons for this crisis are not only economical but also political. Austrians are not afraid to criticize their government that it agrees to pour money into the troubled Greek treasury continually. Maria Fekter, the first female finance minister of Austria, was accused of spending taxpayers' money without transparency and control. Impatience, anger, fear and mistrust dictated the mood of ordinary people. They felt cheated by the Greeks, the European institutions and by their own politicians.
 
SHORT BREAK IN THE CRISIS
I asked Michaela whether she is convinced that the proposed draconian measures would work in Greece. She thought. "There is no point to raise taxes in a country where tax evasion is clearly their national sport – she concluded.  – But apparently, the Greeks have no choice. They would not make it without that money." The dramatic decision the Greek Parliament took on June 29 to accept the European Union’s proposal as a condition for the granting of new funds was relieving. Kleine Zeitung wrote it would allow Greece to take a little breath.

The President of Austria Heinz Fischer congratulated the Greek Parliament's decision. He warned that the road to the recovery of the Greek finances would be difficult and painful, but thanks to this decision, the crack between Greece and its European partners has been deleted. The statements of the Foreign Minister Spingeler, the Minister of Finance Maria Fekter and the Chancellor Werner Faymann were also positive. Nevertheless, they all stressed that the money itself would not solve the problems of Greece. To get out of the deep quagmire of the crisis, the country should follow a clear strategy and start infrastructure projects. Only now, Michaela does believe that something could change in Greece. She believed that the spending cuts, tax increases and privatization would help Greece to restore.

WHAT ARE WE SAVING?
The question of guilt is hard not only because of the moral aspect, but also because unraveling it brings to the light hidden truths. Is it only Greece to blame for the situation, in which it is currently, or during all these years, major financial institutions, banks and business interests have contributed to the collapse of the country? Why has no one noticed the growing problems in the Greek treasury so many years? What is Austria saving by giving nearly € 2 billion aid – the Greek economy, the Euro or its banking interests in the region?

The fact is that there is no way this crisis to remain within one state and its effect would cause a chain reaction in the neighbouring countries. Much has been written about the German and French investments in the island country to be saved. Assuming the failure of Greece could also severely affect the interests of the Austrian banking sector, although not on a large scale. 16% of the assets of local banks are connected with Eastern Europe and in particular Bulgaria, Romania and Serbia.

Our kids finished school and I have not met Michaela soon to continue our talks about politicians, the European Union, the fate of the euro and the emerging from the long crisis. The developments continue, the "Greece" problem has turned into a more serious and painful issue for the future of the European Union, the need to restructure the Union, to introduce financial discipline and centralization. It seems that people's fears are becoming greater and they increasingly distrust the ability of European politicians to cope with the growing crisis. Anonymous author of a comment on an article in Der Standard asked, "We probably got off with a whole skin. But what should we do to be sure that this will not happen again?"Well, it seems that the political elite have to do a lot of thinking. And summer is more than hot.