Fancy a Greek Isle?

Germany is baulking at a Greek bailout ….. 84% of the people are opposed according to polls, and Frau Merkel is decidedly lukewarm. This is no surprise; the Germans are pretty commonsensical after all. They are  going through a “spot of fiscal turbulence” themselves and hardly in a mood to bail out a feckless, tax-avoiding, economic basket case on the flaky south of the Brusselian Empire ….

Instead, they have come up with a cunning plan; the Greeks should sell some of their islands. I can see the attraction; at knock-down prices, no doubt a good many Germans themselves – short of coast in the homeland – would be only too keen to snap up a firesale bargain.

But if I were Greek I would beware of Germans with cunning ideas. After all, it could be the islands today and the Acropolis tomorrow. Selling capital assets to clear debts built up on  a binge of tax-avoided short-term consumption is hardly the long-term solution, and it is remarkable how we humans do tend to go for short-term, quick-fix solutions (see my post on the Fat Pill) . Of course, in Europe at least the Sun (can I capitalize it? It is after all the source of my existence …) plays a large part here, for the further south you go the hotter it is, the more corruptly-shambolic the taxation system, the flakier the economy and the higher the debt. Of course, Britain is an exception to the rule, since it must be put in the Mediterranean basket of cases even though it is far up in the north. Still, Britain was ever exceptional ….

No, I would advise the Greeks to hang on to their islands for a rainy day and do the right thing, which is take the medicine, invest long-term rather than on frivolous consumption and in general live within your means. Selling the islands is desperation stakes, even if the ultimate solution would be to sell the whole country to the Germans and let them sort out the mess, and – more to the point – pay for it all as they did with East Germany.

But though this is hardly a laughing matter – especially for innocent Greeks (I assume there are some!!) – I did have a chuckle yesterday when I saw the headline.

“Greece calls for EU to play its part.” – in other words, bung in billions to bail them out. I am I confess mystified to understand exactly why the thrifty Danes should play their part in bailing out the hapless Greeks, though I suppose we do still owe them for democracy and stuff. When does the statute of limitations run out on this?

Well, good luck Greece, but don’t count on my pfennig, and don’t sell the islands either!

By Chris Snuggs

• Economics
• Politics