Independent
5 May, 2010
Greece is the shape of things to come. No, that is not to say that the rest of Europe, or indeed the UK, will have riots in the streets, though that may well happen. Nor is it to say that other countries will be pushed to the brink of default, though this too may well happen. Rather it is to point out that what is happening in Greece will shape how governments everywhere will have to behave. Greece is the canary in the mine.
This is not just about the future of the Eurozone, though it is certainly that. It is about a change in the relationship between governments, electorates and savers. Governments have been used to responding to the demands of the electorate by framing policies that appear attractive, fine-tuning them to create the basis of their support. Savers, at home and abroad, have not featured very much in this mix. Governments could borrow, within reason, on favourable terms. That is no longer the case.
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