The fact that Argentina was forced to turn to the IMF for assistance does not only awaken nightmarish memories in the citizens of a country that has been through so much.
It is also a resounding message to all those who harbor illusions that exiting a crisis is a simple matter, all the more so when the crisis is being managed by populist politicians who cultivate self-deception and illusions in the citizenry.
For over two decades Argentina, though it has a plethora of natural resources, has been bedeviled by successive economic crises, under leaderships that come and go, but are not in a position to stabilise the economy and its currency. That is because they implement inconsistent, populist policies that undermine the stability of the economy, and lead to a constant devaluation of the peso.
That model of governance and management of power in a period of crisis reminds us here in Greece of something. For nearly a decade we have been on a razor edge, exactly because our leaderships are unable to hammer out a long-term strategy to exit the crisis, and because they behave opportunistically, based on their momentary partisan and personal objectives.
So too now, the SYRIZA government is cultivating the illusion of a clean exit from the bailout memorandum and the recovery of the country’s political and economic independence.
There are dozens of pending preconditions to complete the current bailout evaluation, and one faces a crushing debt. Moreover, it is not only we who decide, but also our creditors, who face their own political problems.
The markets, as has been repeatedly proven, most recently in Argentina, do not lend on terms of charity or solidarity. They gauge their interests much more carefully than countries and governments would like.
One wrong move or divergence from targets can bring destruction. We saw it recently on the level of a business with the history of Folli Follie.
As hard as the PM’s office may try to convince us that the uphill road is nearing the end, let us not delude ourselves or expect miracles.
We still have a tough road ahead of us and will face many vicissitudes before we free ourselves definitively from the burden of insecurity.
