Business Spectator

The social unrest in the streets of Athens palpably demonstrates the dangers of letting public debt problems come to the boil. The developed world should watch them carefully and wonder what it can do to avoid a replay of such scenes in New York, London or Tokyo. Though there are no pain free solutions to the world’s public debt problems, this should not stop us from creatively exploring the options.

Having spent the last few weeks in Germany, I returned to Australia more puzzled than ever about the country in which I grew up. Germany has never been a nation that was easy to understand. Nor has it ever been a nation at ease with itself. But in its present state it has become a country overflowing with contradictions.

When the European Union presents its economic forecasts, it often does not receive much public attention. Granted, one could argue that with the head of the IMF spending his week in a New York jail cell it’s understandable.

However, the EU’s latest figures are so extraordinary they should have generated more headlines. Not only do they demonstrate that Europe’s debt crisis is far from over. They are also a damning indictment of Europe’s crisis management so far.

have always wondered why SBS keeps broadcasting the Eurovision song contest year after year. How would any sane person survive a whole evening watching weirdly dressed Ukrainian folk singers, Moldovan punk rockers or Israeli transvestites? Who cares for cringeworthy presenters in glitter suits that were not even fashionable when they were invented? And I haven’t even mentioned the absurdly tedious scoring system.

The much praised Norwegian SWF may not be as shining an example as it first appears. Australia is well advised to think twice before following the Norwegian model. And, in any case, before it can ‘save’ any money, the Australian government should first reduce its $42 billion budget deficit. Otherwise Australia could end up looking like some entirely different European countries.

The evil spirits unleashed by the euro apprentices are not just a disaster for the continent’s economy. They have the potential to damage and weaken the political systems in many of its countries. There is no master wizard to stop this looming catastrophe; there is not even a master plan.

The European rescue package will do little to make Portugal more attractive to its young generation. They only have to watch the news from Greece to see their own future. Overly indebted, unable to fund itself at reasonable interest rates in capital markets, the government will become dependent on funds from the European rescue funds almost indefinitely.

Icelanders are a tough people. No one turns catastrophes into opportunities as well as the Viking descendants. Instead of seeking foreign help with their country’s financial disaster, Icelanders are turning their backs on the EU.