Greeks Hit the Streets by the Thousands

A number of Greeks have decided, perhaps correctly, that if they threaten to put their own economy into ruins the government will relent on its austerity policies. New protests have started to do a good job of it.

Greeks have taken to the streets in what Reuters has described as the largest strike there in years. The protests will extend at least 48 hours. The strike includes people from industries as broad as transportation workers, garbage collectors, and government employees. That means the nation’s lucrative tourist trade will nearly disappear for the duration. Many of those who planned to travel to the ancient southern European country may change their plans permanently. Why not go to Turkey, where no one is on strike?

The strikes happen as the on-again, off-again attempts to create a huge rescue fund for the EU are off again. French president Nicolas Sarkozy has warned that the region is out of time. So has Bank of England governor Mervyn King, who says the recovery in his own country has faltered in part due to trouble in the European region.

Germany also continues to vacillate about the amount of aid it will provide to a bailout. German Chancellor Angela Merkel said this weekend’s EU summit will not bring a broad solution to the region’s problems. If they are as immediate as many financiers fear, her point of view, should it be correct, means the default of Greece that is widely expected will happen.

The Greeks are quick to commit financial suicide, or nearly so. They believe that the EU will rescue them no matter what. Otherwise, the consequence to the region’s financial situation would be catastrophic. Their movement is a game of chicken, particularly with Merkel. It is hard to gamble that Germany, by far the largest economy in the EU, will not win. Protests against the Greek government have effects beyond Greece, and those effects will be felt as early as this weekend.

Douglas A. McIntyre