Wednesday, June 22, 2011

Of nations and states - can we impose president's rule on Greece?

First, let me clarify what I mean by that. In India, rogue states, where the democratic processes fail because of whatever reason, are subject to the President's rule. The Indian system is a parliamentary democracy with the Prime Minister as the head of central government while states are headed by Chief Minister. The President is the head of the country overall heading its army, judiciary, education etc. The President also appoints governor and through them acts as a counter-balance to ensure constitution is upheld. In case democracy cannot function properly, because of natural calamity or because of law and order issues, President's rule is imposed.

Greece needs such a rule from EU as its political processes are broken. Those need to be set in order. Till such a time, there is no use giving any bailout money to the Greeks. All that money will go down the drain. But this is not possible in the EU mechanism as it will undermine the Greek sovereignty as a country. Hence EU, through IMF, is trying to achieve the same effect.

The problem, however, is that within the EU recommendations are issues that are essentially pro-creditor sanctions, Shylock's pound of flesh if you will allow it. Eliminate those conditions and we may reach a tactical solution. Any other way Greece won't accept.




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