Debt is a major load to most individuals. To nations - heavily leveraged from the financial crisis of 2007-08, and forced to accept bail out money from monetary institutions, the load is even harder, more complex, destabilizing and a source of social discontent and dissent from Ireland, to Great Britain, to Spain, to Portugal and elsewhere now encompassing the oldest democracy - Greece.
Greece, like many other countries that have strong social connections to the people who expect political patronage, and where domestic policies have been established to appease and to console their beloved citizens, is finding out that the terms to borrowing money from international monetary institutions, runs adverse to domestic appeasing policies. Greece and others are discovering that practiced domestic spending that has maintained civil stability within their nations for many years, is now threatened under new terms to repay old debts and to attaining new loans.
Simply put, spending cuts mandated by monetary institutions upon debtor nations run counter to the culture of domestic affairs under which nations have been able to sustain their internal stability. Call it austerity or whatever suite-and-tie term fits, but the terms imposed upon nations through borrowing and for new credit, threatens the internal security of some nations.
Greece's present dilemma, which hopefully could be fixed soon, exemplifies the debacle nations face as a result of borrowing. Differences with creditors to make more reforms to satisfy the terms to new loans bring into focus the sovereignty of nations per demands of creditors.
While Greece complains that the International Monetary Fund(IMF), according to the Associated Press(AP), was being needlessly picky about the reforms Greece has proposed, the IMF has found that the budget savings reforms, which creditors are demanding in exchange for loans, are focused too much on tax increases in Greece that can hurt businesses, rather than on spending cuts.
Alexis Tsipras, the Greek Prime Minister, who came to power in January on an anti-austerity and bail out platform hoping for some write off on Greece's debt, countered the IMF reasoning by debating that as long as Athens delivered the right amount of savings, the IMF should have no say in what specific policies a sovereign country adopted, the AP reported.
"This odd stance seems to indicate that either there is no interest in an agreement or that special interests are being backed," Tsipras charged of the IMF position that spending cuts top tax increases as a measure to solve the Greek dilemma.
When European Union(EU) finance ministers convene later this week at a summit, it is hoped that an agreement on Greece's debt solution would be put forward - an agreement that other nations could use as precedent to ameliorate their own austerity mandates in order to cushion their impact upon the average citizens from Ireland to Great Britain to Spain to Portugal and beyond.