Everyone knows that the Greek economy is in meltdown and has been for some time. Frankly it is a scandal that Greece was ever allowed into the Euro. At the time everyone knew that the figures provided could not be right, but unlike the story of the Emperor’s New Clothes, there was no little boy with the courage to speak up and point out the bare faced truth.

The fact is that the whole Euro project is and always had been a political rather than an economic one. Common sense never mind financial realism should have made it clear that Greece has to default and/or leave the Euro. It is dragging everyone else down with it – and not just those in the Euro either.

Much has been said about the fact that the German population is mightily fed up with their government bailing out the Greeks with German money. But sadly it isn’t just the citizens of rich Germany who is being made to suffer.

Slovakia is a small country of 5.4 million people and has the lowest average wage of any EU member state. Mindful of the precarious state of their own economy, which they only saved from ruin a few years ago by instigating a flat rate tax system and making drastic spending cuts, the Slovakian parliament refused to ratify the expansion of the European Financial Security Facility (EFSF) on Wednesday.

However, as is usual with EU ‘No’ votes, a second vote was called on Thursday and the decision was reversed. Mind you, it wasn’t actually any pro-Green or pro-EU decision and certainly not one in the best interest of the Slovakian people. No, it was just a piece of political blackmail. Following an election 18 months ago Slovakia is governed by a coalition of four parties and the second vote was only approved by the main coalition members agreeing to an opposition demand to call a General election this coming January.

Slovakia is going to have to raise 7.7 billion – 11% of their Gross Domestic Product – to bail out the Euro and some politicians are going to have to explain to their voters why it is that they are going to have to pay a higher value-added tax (VAT) just so that Greeks can get pensions three times as high as the ones Slovakians can enjoy.

It’s hard to see how prolonging the agony of a Greek default serves the purpose of Slovakian taxpayers or European taxpayers in general. I’ve not yet found anyone willing to argue that any of this will help Greece will pay its debts.

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