Many of us can remember the Greek Communist banners bearing the slogan, ‘Peoples of Europe Rise Up’, hanging for all to see in broad daylight and in angry protest over the country’s austerity measures. These banners were fluttering in the wind on the walls of the ancient Acropolis, Greece’s most famous monument. The date? Tuesday, May, 4, 2010.
Just over a year later, nothing seems to have really changed. There is still no sign of a conclusive economic recovery and despite public protests all around the country, some of its citizens have resigned themselves to “Que Sera, Sera” (Whatever Will be, Will be). Why? Probably because Greece has a history of defaulting on its debt and people sometimes check out facts and history.
The first time Greece issued debt was February 21, 1824, when it sold bonds yielding 5%. Those 1824 bonds paid just 5 installments before the nation defaulted in July, 1827. Since then, Greece has made a habit of applying for loans and taking on even more debt. Political leaders often throw around the word “unprecedented” and play down the country’s debt issues. However in reality, history is indeed repeating itself.
Putting things into perspective, Greece has been in default approximately 150 of the last 200 years, with sovereign debt being the biggie. Can Greece eventually overcome its debt-ridden troubles? Can its people stay optimistic or will more banners be strung across buildings in another year’s time?
To be fair and to not completely give up all hope. National defaults, while rare, are not completely unheard of. Other European nations have also defaulted throughout history and on more than one occasion. Those include Austria, Bulgaria, Germany(1932), Hungary (1931), Italy (1940), Poland, Romania, Russia, Serbia/Yugoslavia, Spain and Turkey.
Greece may not be out of the woods yet…that’s why most of the country remains unnerved by the idea of default. However, it’s still not time to hear matter-of-fact voices echoing “Que Sera, Sera“
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