The Troika has landed in Cyprus but we are somewhere else. Discussions are starting to discuss the juicy parts but our side does not seem to grasp or want to grasp the gravity of the situation. Some situations are too obvious not to comprehend and that is what happening with our government including the other political parties. Are we in denial? Apparently so.
Last week, at a medical checkup, the doctor took a quick look and simply confirmed what others were saying: “I am conservative when it comes to things like these, but there is no doubt that a surgery is needed!”.
And a surgery is what is needed. Even if the banks are excluded from the big picture, the public sector is spending quite more than what the government takes in. The Troika did not have to take a deep dive to see what was going on, it was simply written on the wall for them. Troika does see that with the current spending trends, there is simply no way for the government to meet its budget deficit numbers promised to the EU.
Firstly, it does not take a genius to understand that public employees get rewarded quite well compared with the private sector. This observation undoubtedly sets the tone on what’s to follow especially compared with the salaries of other countries that requested Troika’s assistance.
Secondly, there are always other budget cuts that can be implemented assuming that most governments or organizations manage their finances frugally. It is much easier to budget a ball-park number for a project instead of having to deal with precise methodology. Also, many projects implemented are not focused, thus the public is not getting the most out of their taxation. Cutting spending causes you to really think what is absolutely necessary or not.
As it appears, our stand is that we can fix our problems by raising revenues. A policy that we had the chance to implement on our own but with measures so superficial that there was no chance in generating the amounts of money that’s needed. The past measures were mostly feather-touches. Anyhow, most measures would simply affect the most vulnerable aspects of our society causing further economic hardships on the weakest.
Governments exist to server their people and not people to serve the government. Since we have not been able to govern ourselves properly, then let Troika push us to the right track.