It's the economy stoopid

It's the economy stoopid

As the Greek riots pass their fourth night with no let-up, the situation – as reported – seems to be getting more grave, with a general strike adding to the nation's woes.

What marks this out us the comment from Stathis Anestis, spokesman for a federation of private sector unions. He says: "Participation in the strike is total, the country has come to a standstill." Banks, schools and public transport are shut and hundreds of flights in and out of the country have been cancelled as air traffic controllers also went on strike. 

The level of unrest here, and the huge support for direct action, is clearly more than a rump of disaffected youths running amok. The whole country is crying out, and there is clearly something seriously and fundamentally wrong.

It is perhaps typical though that one of the primary architects of the current crisis, prime minister Costas Karamanlis, is the one who is so strident about the "enemies of democracy," seeking to dismiss the riots as "acts of vandalism". Yet even the headline in the popular daily Ta Nea proclaims: "Government and police on the brink of collapse". 

It is, as you might expect, Ambrose Evans Pritchard who takes a broader perspective, looking at the economic issues. He remarks that these riots illustrate "the slow-burn effects of Europe's monetary union" as they "begin to corrode the democratic legitimacy of governments."

Greece's euro membership, he writes, has led to a warped economy. The current account deficit is 15 percent of GDP, the eurozone's highest by far. The deficit ($53bn) is the sixth biggest in the world in absolute terms. The public debt is 93 percent of GDP, well above the Maastricht criteria, and international investors are treating Greek debt as if it were the plague.

Year after year of high inflation has eroded the competitive base of the economy and the underlying rot, disguised by the global credit bubble and the Greek property boom, is now being laid bare.

Nevertheless, Ambrose expresses a little surprise that the "riot phase" of this long politico-economic drama known as EMU has kicked off so soon, and that it has done so first in Greece where the post-bubble hangover has barely begun. The crisis, he says, is much further advanced in Spain, which is a year or two ahead of Greece in the cycle.

This notwithstanding, he predicts that the picture is going to get very ugly as Europe slides deeper into recession next year. The IMF expects Spain's unemployment to reach 15 percent. Immigrants are already being paid to leave the country and he argues that there will be riots in Spain too.

No doubt, he adds, events will be ugly in Britain as well. He could be right, although he adds that he is "certain" that the British people still feel that the authorities who set economic policy are ultimately answerable to Parliament and to the democratic system.

If that is the case, then all that stands between us is a false perception. Our authorities have long ceased to be answerable to parliament – just the theatre remains. When perhaps more people realise that, we will no longer have to watch rioting in distant lands on our televisions (those who still watch them). We will be able to look out of our own front doors.

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Join the (EU) Navy

This ship looks like a ship of the Royal Navy. It bears the title HMS Cumberland. Until recently, it had been undertaking NATO led counter-piracy missions off Somalia, so it was most definitely a British ship.

Now another as yet unnamed frigate is to take over. Just like the Cumberland, it will look like a Royal Navy ship and it will be manned by British sailors. But it won't be a British ship. It will be an EU ship, under EU political control, part of the European Union's first naval task force in an operation, called Op ATALANTA.

That's what the MoD website quite openly tells us, proudly declaring that the Royal Navy's Rear Admiral Phil Jones took charge of "the EU led counter-piracy naval operation," which is to operate off the coast of Somalia. That is where the UK frigate comes in.

Euro Phil also tells us:

This initiative clearly demonstrates the EU's determination to combat these criminal acts. It is also something of a privilege for the UK to be asked to lead such a milestone operation and it is an important step in reassuring the international shipping community that something is being done to protect our maritime interests.

Note, he does not say that this demonstrates our determination to combat these criminal acts. Instead, we are informed that the UK, together with France, was at the forefront in launching what would become European Security and Defence Policy (ESDP) at the Saint-Malo summit ten years ago. And now it is a reality, with an EU fleet – part-paid by us – sailing on the high seas.

Euro Phil thus warbles: "The EU mission to tackle piracy off the coast of Somalia is the latest example of the progress in European Defence in the last ten years and evidence of UK's commitment to ESDP." The man is a traitor – a disgrace to his uniform - and should be shot. Instead, he's a fully paid-up member of the EU naveee, and we're paying his wages … and his pension contributions.

There are no good operational reasons for this. The first "EU ships" – this is how the MoD describes them - are expected to arrive in the area soon, "after formal agreement by foreign ministers at a meeting in Brussels". They will take over from four "NATO vessels".

Since the Royal Navy has already been involved in NATO led counter-piracy operations off the coast of Somalia, using HMS Cumberland, NATO is obviously good enough for this operation. There is no need for an EU presence. But the EU has its vainglorious ambitions to become a military power in its own right. So it is using another of our ships with our men – and a few women – and boasting that it has its own Navy. And our government is mad enough, stupid enough, treacherous enough to let this happen.

Interestingly, Conservative shadow spokesman on defence, Dr Liam Fox, was very voluble on Sunday about the Falkland Islands being left without the protection of a British warship for the first time since the war with Argentina. This is because the Royal Navy no longer has enough ships to meet all its commitments. We now know why … because they are joining the EU Navee.

And the Conservative response to this is?

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