Issue link: https://maltatoday.uberflip.com/i/537300
14 GREEK ambassador Theodoris Daskarolis compares Greece to a patient who has been forced to endure a debilitating treatment, which after five whole years, ended up making him sicker than ever before. He compares the institutions (European Commission, European Central Bank and International Monetary Fund) making the final financial offer, on which Greeks will be voting today, to a physician who persists in offering this treat- ment despite clear signs that the patient needs a different cure. The Greek embassy, located in a beautiful colonial mansion in Ta' Xbiex, has also taken the brunt of austerity. Cost-cutting has re- sulted in a reduction of staff from eight to three people. I met the Greek ambassador on Thursday, three days before his country holds a referendum in which the Greeks are being asked whether their country should accept the latest austerity package offered to them by the European Commission, the International Monetary Fund and the European Central Bank. Many in Malta think that the Greek crisis is simply a matter of Greece being asked to pay its cred- itors back. But underlying the fi- nancial crisis is an unprecedented humanitarian crisis unseen in any member of the European Union since its inception. Daskarolis describes Greece as a society where roles have been re- versed to the extent that pension- ers earning €300 to €400 a month are supporting their jobless chil- dren. "People are surviving thanks to the strong solidarity ties binding Greek families," says the ambas- sador. That is why the kind of cuts in pensions proposed by the Euro- pean institutions in the latest pro- posal made to Greece were deemed unacceptable by the Greek govern- ment. Not only has the official unem- ployment rate hit the 27% mark and rises to a staggering 60% among young people but many people who have a job are not even getting paid for it. "Many continue working without being paid for months simply not to lose their jobs… they hold on to their job hoping that things may change in the future." Even professionals like archi- tects, accountants and economists are not charging any fees simply because they cannot afford to lose their clients. Many others, espe- cially educated young people have lost hope and are leaving Greece seeking greener pastures in other countries including Malta. "We have good universities which are now training people who end up offering their talents to other countries. We are losing doctors, lawyers, engineers and other tal- ented people to other countries after investing so much in their education." According to Daskarolis this is a clear indication that the original bailout programme has failed. "The bailout programme was wrong not just from a humanitar- ian perspective but also from an economic dimension," he says. According to leaked documents Greece would face an unsustain- able level of debt by 2030 even if it signs up to the full package of tax and spending reforms demanded of it, according to unpublished documents compiled by its three main creditors. The documents, drawn up by the so-called troika of lenders, support Greece's argu- ment that it needs substantial debt relief for a lasting economic recov- ery. They show that, even after 15 years of sustained strong growth, the country would face a level of debt that the International Mon- etary Fund deems unsustainable. "This is the wrong medicine which is making the patient sick- er… moreover it risks killing him… If the intention was to cure him, we have to admit that he needs a different medicine." Still how does he reply to those in Malta who insist that whatever the circumstances Greece is obliged to honour its debts. He also makes it clear that most of this money did not actually go to Greece. "Malta and other European coun- tries were forced to lend money to Greece for the sake of saving pri- vate German, French, Dutch and other banks which were exposed to the Greek debt." It is calculated that less than 10% of the bailout money was left to be used by the government for reforming its economy and safe- guarding weaker members of so- ciety. According to Daskarolis the money went full circle, from the banks from which Greece origi- nally took loans to the same banks to save them from collapse. He immediately expresses his gratitude for Malta's willingness to help Greece while qualifying that Malta actually gave Greece €50 million and not €177 million as claimed by the Maltese govern- ment. This is because the other €127 million were offered as guar- antees to the European Financial Stability Facility (EFSF) set up as a temporary rescue mechanism in 2010. He also points out that Greece is repaying its interests on the loan given by Malta. "I cannot understand why this issue has become politicised in Malta…we are repaying the loan already through interests which are paid regularly." In fact the Greek ambassador is surprised by the hawkish stance taken by the Maltese government Interview By James Debono maltatoday, SUNDAY, 5 JULY 2015 The cure which ma