Since last week news of Greece partial bailout we can see a big smile in all those who are defenders of the easy way and the individual disclaimer of all those who are responsible for leading Portugal to the current situation.
Even when it was Portugal who gives debts bailout to other countries I was never a defender of it and now I will not be a defender of this policy when this persons insist on the idea that Portugal should not implement such hard economic measures so later on Portugal can ask for a debt bailout without having it so hard over the Portuguese citizens lifestyle.
The Portuguese State and the Portuguese’s Governments have worked a lot through their attitudes and the Portuguese legislation to create on the Portuguese’s mind the idea that the State and the Governments are ethereal entities that no politician or public manager is ever criminal or monetary responsible for their attitudes and decisions in and off their public functions, the problem is always of the “public machine”, the guilt is always of the “public machine” but the public machine are not a computer or a robot but persons and in Portugal unfortunately those persons are what the worst the country have on terms of honesty, ethic and competence. For that reason no Portuguese politician are in jail but the corruption and the economical criminality are a gigantic national problem.
Here it is the main question about public debts bailout. Excluding the countries that need financial help because a momentary problem of public financial illiquidity as it was the case of Ireland and Iceland, the countries that usually need international financial help are countries with this kind of parasitic political class that steal their countries for decades until they see themselves facing the reality where they have on their hands a country on the bankruptcy and that is the moment when they are obligate to ask for help and accept the impositions that make more difficult continue using the public money as if it were their own money. If the international community gives a bailout to the country what this kind of politicians will learn is that they can carry on stealing free as ever, because there always will be a bailout to saving them of suffer the anger of those who they steal, just like a burglar to whom the judge gives a second opportunity instead of send him to jail.
The States and their Governments are not abstract entities but persons that make their decisions in defence of their own personal interests using their moral education, or in this case the lack of it, so the forgiven of their actions and decisions will only let an open door to they keep having the same behaviour as always.
However it is clear that the international community must create the opportunity for these countries recover from their bankruptcy. For that reason I always have defended not a bailout but a debt renegotiation with lower interest rates, never higher that 2%, and a dilatation of the payments terms.
We can never forget that a bailout it is not a decision that makes a debt disappear as some kind of magic, as if that money would never existed but the reality it is that there will be always someone who have to pay the bill. On the present Greek case the bailout will provoke a huge lost among the European banks who have bought Greek public debt and that means that the European States will have to reinforce their banks capitals to prevent the weakness of the financial system. This means that will be the European citizens, those who have voted responsibly and have made personal sacrifices in their lifestyle to prepare their countries to have strong economies are the ones who will be obligated to pay for the Greeks irresponsible votes and lifestyle above their economical capacity.
But the present main issue it is the implication to the EU and to the Euro zone of the Greek bailout or the eventual bailout of any other EU member. Therefore it is necessary to resolve the Greek situation but above all to put an end to the public debts problem on the Euro zone. To resolve the current situation it is necessary the creation of a EU new financial instrument that can be created by a modification of the present emergency fund to a new European financial instrument with the financial capacity and the powers for assume the Greek debts to the international market, and the debts of any other member that needs it like Portugal and Ireland, and those countries would pay their integral debts to this fund but in dilated payments and with lowers interest rates and the countries would be obligated to fulfil a plan to recover their public finances and their economies. This way the UE gives the clear and strong message to the international market that the debts of one euro member it is a debt of all euro zone.
It is obvious that those countries would have to submit their budget policy to a rigorous supervision from the European institutions to prevent the continue of the expenses policies and the corruption that led the country to bankruptcy at the first place.
On the Portuguese case it is more than clear that the only reason for the current bankruptcy of the country it is the corruption and the culture of the easy way which destroyed the country economy. The fact of Portugal be a small country and the international financial crisis it is just an excuse for the Portuguese reality, Belgium is smaller than Portugal and do not have the natural resources that Portugal have as the sun for energy and for tourism or the huge oceanic territory, for example, and Belgium does not live the economic crisis that Portugal lives. So what’s the difference between these two countries? The difference it is the culture of merit and productivity and a more honest and competent politicians of Belgium.