Crime without punishment

Misha Glenny puts up a defence of Papandreou from a different angle and hints that his downfall may have had something to with the actions of a corrupt Greek oligarchy that "have mobilised hysterical media outlets which they own in order to denounce and undermine Mr Papandreou at every opportunity, aware he is the least pliable among Greece’s political elite".

His description of an elite that has dodged taxation, salted big money abroad and hovers ready to pick up bargains in the sale of assets, in part enforced by the results of their own corruption, gives another reason why the Channel 4 programme, Go Greek for a Week, was so misjudged. Glenny is simply pointing out that the actions of bus drivers might be a tad less important than those of the super-rich.

Glenny is coruscating about the EU's toleration of corruption, but now that seems to be matched by an intolerance of democracy. Governments headed by unelected bankers, including members of the far right, seem all the rage. Heather Stewart is not impressed:

Of course, the fig leaf is that Berlusconi's Yale-trained successor, Mario Monti, will lead a "technocratic" government that will implement drastic spending cuts and necessary structural reforms to nurse the economy back to health. Exactly the same story is being told about ex-central banker Lucas Papademos in Greece. But there are two major flaws in this argument. First, there's no such thing as a harmless, neutral technocrat; and second, the plan they are toting won't work.

She uses a new report from Research on Money and Finance to, yet again, reiterate the points that seem lost on policy makers.

Greece has offered up the scalps of 30,000 civil servants, raised taxes, cut public sector salaries and put a cornucopia of state assets up for sale. The result? A cumulative 10% decline in output through 2010 and 2011, and an unemployment rate of 18.4%. Greece's debt-to-GDP ratio has actually risen, not fallen, since the "rescue" package was implemented, and forecasts from the commission show debt hitting a Japanese-style 198% of GDP by 2013. On its own terms, the programme has been self-defeating.

And still they persist. Careless about democracy, blind to evidence and turning their backs on evident corruption, they carry on regardless in a self-congratulatory way until the next inevitable failure. As to the consequences, the only thing that is sure is that the oligarchs will not be the ones suffering.