Some good news over in Greece as Standards & Poor’s upgrade their debt credit rating by six points from selective default to B-minus.
With the financial support from Germany and the hugely unpopular spending cuts imposed by both Germany and the Greek government have led to big boost in confidence for its struggling economy.
While this is great news for the European Union (in particular Germany) and the Greek government it will bring little comfort to the Greek people who are still suffering from mass unemployment and rapidly rising poverty.
As I have thought right from the beginning of the economic crises, Greece and indeed any Eurozone country will not leave the Euro, the European project goes beyond just economics, Eurozone countries will not let each other down and will support each other when they are struggling, they succeed together and they suffer together.
The European Union is as much an ideological union as it is an economic union and true it could be argued that this ideological binding has caused economic instability however I would argue strongly against this and say that because the economic binding in Europe wasn’t strong enough, the problems caused by the US housing crises made Europe’s recovery more drawn out and painful than it had to be. Had the EU been more cohesive with less economic say and independent direction by its member states then the EU’s recovery would have been much faster and effective.
Hopefully this is the turning point for the Greeks and this boost in confidence will reflect in the unemployment rate falling and standard of living rising. Currently poverty and unemployment are at record rates with unemployment now over a quarter of the population.