Thursday, October 6, 2011

Thoughts on the European Union

"Do you consider yourself Spanish, or European?" This was the question I asked my host parents last night during dinner. I'm taking two classes, one about the economy of Spain and one about the economy of the European Union, that have sparked some interesting dinner conversation and debate.  (I'm also in classes about culture and language; not as interesting, but that's beside the point).

If you've read a newspaper or checked the news in the past day, week, or even year, you probably know that Greece is in a pretty messy economic crisis.  Here are some quick facts on the current economic situation:

-Fiscal deficit was 10% in 2010
-Unemployment among 15-24 year olds is 43%
-Over $147 billion in loans has been given to Greece 
-Inflation is close to 5%

What it all boils down to is that they are not helping the strength of the Euro. With an economy the same size of the American economy, the European Union has an uneven distribution of wealth, resources, and development.  Why should countries like Germany, with unemployment at 7% and inflation at 1%, have to bailout the Greeks?  Should Greece be kicked out of the EU, temporarily?  I mean, they weren't exactly honest on their "application" to the EU; they lied about how much they collected in taxes and were misleading.  And nobody caught them until it was too late.  So the question has become, "Do you consider yourself a German, or a Greek, before your consider yourself a European?"   There's this idea of "we are all in this together." 

Or are they?

My host parents didn't really have an opinion about the European Union.  In fact, they don't really pay much attention to current events outside of Spain.  When I asked them if they knew how many countries were in the EU, they didn't know (Do you? It's 27, but only 17 use the euro).  They did have comments to say about the Spanish government; that it was corrupt and dysfunctional.  They're excited for the upcoming November 20th elections (which, ironically, marks the 36th anniversary of Franco's death).  This has been a good way to practice my Spanish and get to know understand a little bit more about current events in Spain. 

I know a bar owner who is from Greece, so I asked him about it, too.  His name is Tassos, and he's lived in Spain since 1996.  He thinks that Germany should bailout Greece.  He told me that during WWII, Germany occupied Greece and stole all this gold, and never paid them back....I didn't really understand the nitty-gritty details, but his point was that Greece should stay in the EU.  He told me about how corrupt Greece is, though.  There's so many people who have nice cars, big homes, and most people avoid paying taxes.  He described the mansions that rich Greeks own, on small islands; none of them paid any taxes, though. How unfair is that?! This, he said, would never fly in a country like the US.  Which is why they're in such a crisis right now.

With 23 official languages spoken in the European Union, it's hard to feel the same sense of European nationality that Americans have.  However, the EU was founded on grounds of promoting peace following WWII. So maybe kicking Greece out of the EU isn't the best idea ever. It'll be interesting to watch these events unravel over the next few months.   

Moral of the story: don't lie, and spend your money wisely! 


These stats are from my class notes and a little bit of research---to any economists out there, correct me if this is wrong!
(https://www.cia.gov/library/publications/the-world-factbook/geos/gr.html) 

In other news: I have a confession to make. I love McDonald's! After my morning classes the past couple days I've been absolutely starving. I don't generally eat the biggest breakfast ever, since it mostly consists of white toast (bleh!), and lunch isn't until 3pm! So I've been going to the McDonald's in the Plaza Mayor and getting a "capricho," which is a snack wrap, for 1.90€.  And it's delicious, every time. It's so much tastier and more filling than the thin, oily meat that I'm served at home.  It makes me SO HAPPY! But I need to stop, as it's very uncool of me. 

Interesting to note, however, that you can buy bottles of beer at McDonald's. Kinda cool, eh?

Off to Portugal tomorrow with ISA; can't wait!

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