<iframe src="//www.googletagmanager.com/ns.html?id=GTM-K3L4M3" height="0" width="0" style="display:none;visibility:hidden">

Leading article Australia

Greek disease

11 July 2015

9:00 AM

11 July 2015

9:00 AM

This week, Greeks voted to reject a tough debt deal imposed by the European Union and the German-dominated European Central Bank. The overwhelming ‘Oxi’ vote was sought by hard-Left Syriza PM Alexis Tspiras to tell the EU and the International Monetary Fund where to stick its deal. Austerity, says Tspiras, is for schmucks. Although Greece’s debt is over $300 billion of other peoples’ money, almost twice its GDP, Tspiras and freshly-resigned finance minister (and former Australian resident) Yanis Varoufakis assured Greeks they can dump austerity and stay in the Eurozone.

Like the black sheriff of Rock Ridge in Mel Brooks’s Blazing Saddles, memorably bluffing a lynch mob by holding a gun to his own head, Tspiras and Varoufakis claimed they could dictate terms if the bad boys of Brussels and the IMF want to see any of their money again. They conveniently ignored that in 1999 Greece signed up to the euro promising economic reform, reining in government spending, and winding back eye-wateringly generous welfare and employment conditions. Instead, Greece hocked itself to the eyeballs just to pay interest on the interest.

Syriza’s meteoric rise last January was an electoral reaction to the severe medicine forced on Greeks by external creditors since 2011 because successive governments were lazy, risk-averse and unwilling to strip voters of extravagant entitlements, like a ridiculously low retirement age. In Greece, anyone working over the age of 50 is a mug.


If you think Greece’s lessons don’t apply here, think again. Federal Labor and the Greens are infested with the Syriza disease. Kevin Rudd and Wayne Swan’s Keynesian orgy of 2008-09 turned John Howard and Peter Costello’s huge budget surplus into a sea of red ink as far as the eye can see. Julia Gillard and Mr Swan didn’t let up. Now Bill Shorten, shadow treasurer Chris Bowen and the Greens lock in billions of new and ongoing spending, opposing the Abbott government reducing debt unless it meets their own self-interested agendas. Labor even rejoices in voting down savings from in its own last budget. Such cynical short-termism trumps even discussing options to future-proof our economy, like last month’s confected scare over a discussion paper proposal to introduce modest user pays into public education. Sensing a political opportunity, populist Labor and Greens went feral, and a panicky Coalition killed any policy discussion before it even started.

Facing an uncertain global future takes political courage and honesty. If we don’t want to ‘do a Greece’, the Australian Left needs to get real on debt and deficit, and Tony Abbott’s government needs reform courage backed by sensible proposals. With its practical second budget, and cautious progress on federation and tax reform, the Coalition seems to have got the message, but while Syrizaism blinds Labor and the Greens to responsible reality, little progress will be made.

The Qanda question

Since the ABC/Q&A affair with the delightful Zaky Mallah, senior Coalition figures have refused to appear on the controversial chat show. First, Kevin Andrews and Alan Tudge and then avuncular Barnaby Joyce declined, the latter apparently on prime ministerial instructions. Mr Abbott and his political advisers appear to prefer to boycott Q&A rather than risk dignifying its juvenile antics with their presence. Speccie columnist Nick Cater similarly said ‘no’.

Although this may be a sensible short term communications and messaging tactic, in the long run it is a flawed strategy. Being set up regularly by Tony Jones and his producers, as Joe ‘Tampon’ Hockey can attest, may lead Coalition ministers to conclude they have more to lose than to gain from the show. Perhaps. But politics is a robust contest of ideas, and if one side stays away the other gets a free kick before a large national audience.Hiding talented Coalition performers like Bishop, Frydenberg, Taylor, O’Dwyer, Turnbull, Pyne and others is needlessly foolish. The show will go on regardless.

Q&A has become a caricature of its early self when, as Tim Wilson pointed out on the panel last week, it was a genuine forum for the serious discussion of policy and ideas. More than ever, for its and the ABC’s credibility, Q&A needs senior government members to participate: if the Prime Minister wants Q&A to grow up, he must relent and let them. Mr Abbott has shown himself fearless in ‘shirtfronting’ Putin and others with whom he disagrees. He should take the fight to Q&A, not shy away from them.

Got something to add? Join the discussion and comment below.

You might disagree with half of it, but you’ll enjoy reading all of it. Try your first month for free, then just $2 a week for the remainder of your first year.


Comments

Don't miss out

Join the conversation with other Spectator Australia readers. Subscribe to leave a comment.

Already a subscriber? Log in

Close