Well the Greek Parliament passed the EU austerity measures. it narrowly got passed, The Greek Prime Minister, Antonis Samaras, spoke of putting a smile back on Greek faces. There are many reasons to be cautious, however.
- Greece is heading for its sixth year of recession
- the latest measures, which will see salaries and pensions cut, will only weaken the economy further - if the past is a guide
- the governing coalition is weak and fraying
- implementation will be difficult. One MP last night called on the people to "disobey the measures". The strikes and protests will continue
- the country's debt levels are unsustainable. Debt is expected to reach 190% of GDP next year. The target agreed by the IMF - 120% by 2020 - is out of reach
- Greece will almost certainly need some kind of refinancing and that will test the German taxpayers once more.
Yet again time is being bought. One former Greek minister told me that the country was surviving on Angela Merkel's instinctive caution. She fears - particularly in a German election year - the uncertainty of Greece leaving the euro. So the country that has seen its economy shrink by 23% remains on life support.
Earlier on Wednesday, tens of thousands of protesters held a rally in Syntagma Square - outside the parliament building in the heart of the capital. The protesters chanted: "People - don't bow your heads!" Some in the crowd held giant flags of Greece, Portugal, Italy and Spain - four of the eurozone's most heavily-indebted states.
the whole thing is now starting to affect the German economy. with the headlines 'German economic data is a 'catastrophe', its now clear the poor southern states are destined for a long drawn out recession, its now evident, the eurozone is more likely to collapse than survive. the UK needs to jettison ASAP. in 1973 we made the mistake of doing the dirt on our friends. we dropped the Anglosphere - in order to join the EU or EEC, as it was known then, we damaged our relations with most of the English speaking world damaged just look at New Zealand, Australia as a snapshot.