Greece and the EU

On the first of January 2007, twenty seven nations came together to make the European Union - they all signed a marriage agreement to stick together through thick and thin. But they had no idea what the future would hold. Ilias Lestaris is a Greek travel agent and he's not very happy because business is not good. His phones have stopped ringing and there are few customers these days. He's been in business for a long time but now he can barely cover the rent of his office and he's a very angry man.

He's angry about his government's failure to release true deficit figures - his country has been in deficit for years and the people had no idea. But he's also angry because his EU cousins now see Greece as a nation of lazy people who earn lots of money and then squander it only to ask for help from their neighbours when things get tough.

Although the EU and the International Monetary Fund (the IMF) have agreed to float Greece a $145 billion dollar loan over the next three years, the Greeks are furious with Germany's Frau Merkel for stalling tactics before the bailout agreement was reached last weekend. A comment from a 39 year old woman who sells handbags in Athens said "Greece is the cradle of European culture, has Frau Merkel forgotten that?

Some economists suspect the Greeks won't be able to cope with the rigid austerity measures Athens has imposed, like a freeze on wages and pensions and suspect the recession will only get worse. Emou Street in Athens is the major up-market shopping boulevarde for weathy customers and is now full of shops fronts with "For Rent" signs in the windows. And they don't trust banks either, the people have withdrawn millions of dollars to hide at home or transfer to foreign banks.

I can understand Germany's reaction to the Greek crises. Why wouldn't they be upset when they are obliged to pay the largest European loan to patch up Greece's mismanagement when their own economy is ticking along nicely - it wasn't their fault that Greece couldn't manage their books properly.

The Greeks seem don't be handling the situation well, today 3 people died after protestors threw a fire bomb into a bank building. And it's not over yet.