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All in the Family for the EU

Since the last round of countries joined the European Union in 2007, the current lineup of 27 member states has been tethered together by the freer movement of goods and people across its borders. The EU is like a big family, every member bound together by the commitment to support all the others through good and bad. By the same token, Greece could be considered a mysterious, somewhat unreliable uncle.

He’s constantly staying over at your house, and he’s always between jobs. Your parents have to feed him. He finishes your cereal. He steals your slippers. You whine and complain, but nobody’s ever going to kick him out – he’s family! Although he does have some great stories from his days as a Hells Angel member, you sometimes have to wonder if the old man is worth the $146-billion tab you pay to keep him around.

That’s what the agreed-upon bailout for Greece is currently set at – to be paid by the International Monetary Fund and 16 countries of the EU. The country’s economy has been on the slide since even before it adopted the euro in 2000; the government pumps far too much money into public services. Greece is renowned for the lavish early retirement packages it doles out (in many cases, to people as young as 50). People in government jobs are paid well, and a lot of people just don’t pay their taxes.

While this might sound like a great life (especially while envisioning yourself on the beach with a cold beverage in hand), it is also a one-way ticket to bankruptcy – something the Greek government is now trying to avoid at all costs.

People around the EU have been voicing their concerns, with lots of the criticism coming from Germany, which will shoulder much of the bailout. As Jeffrey Kopstein, the director of European, Russian and Eurasian Studies at University of Toronto, is quoted as saying in this Maclean’s article, “It’s been repeated so many times it’s a cliché, but why should German BMW workers be bailing out public sector workers in Athens?”

It’s a steep price for the EU to pay, and it comes hand-in-hand with the demand that Greece raises taxes and cuts its public spending. It may upset Greek protesters, but it’s time that the country steps out of the postcard and into reality. Staying together in one piece will be a challenge for the EU – but it is family, after all.