Crisis And Chaos Return To Greece Following National TV Shutdown

The biggest news out of Greece is that the events in the 24 hours have pushed the depressed country right back into crisis mode, with political bickering front and center (the opposition leader called the uncoordinated move “a coup” even as coalition partners blasted the broadcaster shutdown while Europe washed it hands), while the economic contraction is set to accelerate once more following what is certain to be another escalation in daily protests and riots. And who can blame them – with that last civilizational “premium” – free TV for all – gone, what else is there to do?

From Reuters:

 Greece’s fragile government faced an internal revolt and fierce public protest on Wednesday over the sudden closure of state broadcaster ERT, hours after the humiliation of seeing its bourse downgraded to emerging market status. The twin setbacks, coupled with the derailing of a troubled privatization program, blew a hole in rising investor confidence that had prompted Prime Minister Antonis Samaras to declare the risk of a “Grexit” from the euro was dead and a “Greekovery” was under way.

Yields on Greece’s 10-year benchmark bond crept back above 10 percent after Athens failed to sell state gas firm DEPA on Monday, leaving it short of cash to meet its international bailout targets.

The stock market traded at two-month lows after Greece became the first developed nation ever to be lowered to emerging market by equity index provider MSCI.

Prime Minister Antonis Samaras’s government declined comment on the market reclassification as it tried to fend off a growing media backlash against ERT’s dramatic closure. The public broadcaster was yanked off air just hours after the shutdown was announced in what the government said was a temporary measure to staunch an “incredible waste” of taxpayers’ money prior to relaunching a slimmed-down station.

Labor unions called a 24-hour national work stoppage for Thursday and journalists went on an open-ended strike, forcing a news blackout on privately owned television and newspapers. “The strike will only end when the government takes back this coup d’etat which gags information,” the journalists’ union said.

Some ERT journalists were occupying the broadcaster’s building in defiance of police orders and broadcasting over the Internet. Hundreds of employees and protesters gathered outside.

Ah, the smell of Greek chaos in the morning – it smells like normalcy. In retrospect, it appears only the Greeks did not see this coming. When the country handed over its sovereignty to the European Commission, all of the subsequent events were perfectly clear for all to see.