Saturday, July 23, 2011
THEN
On July 23, 1974, after seven years of oppressive rule, the military junta in Greece collapses. Jubilant Greeks celebrate in the streets the end of tight controls over freedom of expression, assembly, the judiciary and the media. Assisted by the emergence of a crisis in Cyprus following Turkey’s invasion days earlier, and senior Greek military officials withdrawing their support for the junta, the regime crumbles and decides to step down—paving the way for exiled Greek Prime Minister Constantine Karamanlis to return. Karamanlis is re-elected as prime minister in 1975 with the New Democracy Party he founded.
NOW
Last Thursday, with Greece facing its biggest crisis since the 1967 coup, government leaders from the eurozone countries agreed to a second massive debt relief package for the beleaguered Greek economy. After significant debate and intense international attention due to fears that a Greek default could spread to other struggling European countries, $156 billion is pledged for Greece. The latest debt relief plan includes, for the first time, the private sector and offers flexibility to Greek debt investors, largely banks and other institutions. They can extend the maturities of their bonds and accept lower payments. With Spain, Portugal and Ireland in less severe, but certainly similar financial straits, eurozone policy makers are struggling to develop long-term solutions for their survival, and the overall viability of European economies in today’s changing markets.
