Wall Street Journal
May 8, 2012
Sunday's Greek elections have been widely interpreted as the logical outcome of harsh austerity measures imposed on Greece by its foreign creditors. According to this view, the Greek bailout, which also mandated sharp cuts in public-sector pensions and pay, led to widespread discontent and fueled the rise of the parties that reject Greece's international credit agreements.
But the problem in Greece is more profound than this. While austerity measures did play a part in voter discontent, the most important factor in the outcome of the elections was opposition to any talk of structural reform of the Greek economy.
The parties that gained in the elections—especially the radical-left Syriza, which ended in second place—do not simply oppose austerity measures. What Syriza opposes is any kind structural reform of the economy that will boost competitiveness. The party has, for example, consistently opposed teachers' evaluations or other overhauls to the ailing education system. It has vehemently opposed reducing state bureaucracy or reforming the inflexible Greek labor market.
More
No comments:
Post a Comment