Corruption Helped Cause The Eurozone Crisis: Transparency International
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Prevailing corruption in a number of eurozone nations played a role in exacerbating the current regional debt crisis, and continues to hamper any relief efforts, said top international corruption watchdog Transparency International (TI) on Thursday.
Prevailing corruption in a number of eurozone nations played a role in exacerbating the current regional debt crisis, and continues to hamper any relief efforts, said top international corruption watchdog Transparency International (TI) on Thursday.
The biggest culprits of corruption in the eurozone were Greek and Italian politicians, both of whom were ranked well below their neighbours. On a scale of 0-10, with 0 being highly corrupt and 10 meaning having no corruption at all, Italy received a score of 3.9 while Greece scored 3.4, ranking them 69th and 80th respectively in a 183-nation list of the least corrupt governments in the world.
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“Eurozone countries suffering debt crises, partly because of public authorities’ failure to tackle the bribery and tax evasion that are key drivers of debt crisis, are among the lowest scoring EU countries,” said a statement by the Berlin-based watchdog, as cited by the Financial Times.
Robin Hodess, TI’s research director, told AFP that the eurozone crisis “reflects poor financial management, lack of transparency and mismanagement of public funds.”
[quote]”There is a strong link between poor performance in terms of perceptions of corruption and broader issues around economic governance,” she added, noting that when graft is widespread, “people feel the pinch at all levels.”[/quote]“This year we have seen corruption on protesters’ banners be they rich or poor. Whether in a Europe hit by a debt crisis or an Arab world starting a new political era, leaders must heed the demands for better government,” said TI’s chairman Huguette Labelle.
According to Public Service Europe, corruption costs European Union member states around 120 billion euros ($161.5 billion) every year. While most associate European corruption with the former communist bloc in Eastern Europe, Western European nations are also suffering from the problem.
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TI’s survey “uses data from 17 surveys that look at factors such as enforcement of anti-corruption laws, access to information and conflicts of interest.”
“Corruption continues to plague too many countries around the world,” the agency concluded.
