Austrian newsreader: “The pressure is growing fast for the federal government to decide over billions of euros of aid for Greece.”
00:13
Headlines like these have been rippling across Europe since May
00:24
To investigate where the crisis all began, we head to Greece, Portugal and Spain.
SPAIN
00:38
This is the region of Castilla La Mancha, Spain. This landscape became famous thanks to the eccentric windmill-jousting Don Quixote, protagonist of Cervantes’ celebrated novel.
00:55
Today, Spain is in economic crisis. The good times are over in Toledo. Amazingly, though, it is difficult to notice the effect of the crisis in the streets. What Spain is experiencing now is the morning after a big night out. For the past few years, the Spanish have been spending money left right and centre. They’ve built houses, bought cars, bought companies, all financed with borrowed money.
01:26-02:03 OT Esther Vazquez, lawyer
Lots of people have made lots of money here, not just through hard work, there’s an incredible amount of corruption here, banks giving out loans to companies who have no collateral. Yes, I think because of these circumstances it’s going to hit us harder in Spain. Our welfare state has been overburdened for years now; we can’t afford to pay social security, unemployment benefits, pensions etc. I don’t think Spain will ever be the same again
02 :06
The economic decline began in real estate.
02:12 (close-up buildings)
This group of abandoned buildings is called Sesena. Here the housing bubble which once ballooned, Is now visibly burst. Sesena is just one of many ghost towns in Spain. 13 000 apartments were to have been built in the middle of this wasteland. 5600 units were built, but only half were completed.
During the boom years the banks handed out loans without hesitation, even to families with no regular income. Now the property has flooded back onto the market, for rent and for sale at miniature prices.
02:52-03:18 OT Juan Dominguez, Housing Manager
There have been many difficult cases here, because of the crisis, because of the situation in Spain, the increase in unemployment. Many people can’t keep up with their mortgage repayments; so the banks have been forced to repossess the homes, of the people who’ve been made redundant. The crisis is very serious here in Spain.
03:20
The province of Jaén is the largest area in Europe for olive cultivation. Until recently, business was good here. Now prices are rock bottom, and this year the olive harvest will cost as much as the proceeds from the sale of oil. Spanish oil merchants haven’t yet succeeded in breaking into new markets.
03:46
At Liboro Sanchez’ press the machines are at a stand still. The olive farmer can barely imagine a future for himself and his family anymore.
04:02-04:41 OT Liboro Sanchez Rodriguez, plantation owner
We need to employ many people for the olive harvest, but the oil has virtually no value anymore. We can no longer keep up with the competition. We have to cut costs, and we can no longer produce the same quality as before, because we’re using machines now and not picking by hand. We can’t employ guest workers anymore, and they blame us. The worst is the uncertainty. We have to save at every turn.
04:43
A few kilometres down the road is the small village of Beas de Segura. In 2004, the villagers became a lottery sensation when they won the ‘El Gordo’ jackpot. But the new wealth has not brought all luck. There are many instances of estranged families, says the baker, Juan Antonio. It was he who bought the ticket and sold shares alongside his bread. Almost all of his customers won a part of the €180 million winnings.
5 `16-5` 37 OT Juan Antonio Herrera, baker, Beas de Segura
Being rich is very complicated, you have to know how to manage it or you’ll run out of money very quickly. When you go to buy something, all of a sudden it costs twice as much because you’ve won the lottery. If they know you’ve won they want their share.
05:40
In the local bar you can hear many anecdotes of failed millionaires and the petty jealousies which came after the windfall.
05:50-06:17 OT Francisco Munoz
The people who won went straight away to invest their money but they were in over their heads, and they ended up losing it all. They speculated, the banks took the money promising high interest and then when the banks caved in they were left with nothing.
GREECE
06:30
Two and a half thousand miles east, we arrive in Athens, where the crisis has also hit hard. Greece is only just afloat still thanks to the huge European bailout. Now there are calls on the country and its people to start saving.
06:46
The Athens Metro has been on and off strike for weeks. Today, public transport is at a standstill.
06:55
For the taxi drivers this means good business, business they sorely need.
07:01
OT Dimitris Antononakopoulos, taxi driver
Before, I could make ends meet when I’d work 14 hours. Now I drive up to 20 hours a day. There is no other way I can live, I have to say yes.
07:17 OT taxi driver
I’ve joked with my wife we should sell our two children. We could save a lot!
07:26
Open
07:30
The former wealth of the Greeks was largely financed on credit. Now the bill has come through.
07:38
Angeliki Halikia is a typical middle class woman, She is married with 2 children but was recently made redundant. Nowadays families’ income are going down while prices continue to rise. This means no more holidays, no more nightlife, and buying only what is absolutely necessary.
07:59
OT Angeliki Halikia, housewife
Life has become so expensive since VAT went up, even here at the market. Still, I prefer to buy in the small, local markets to support Greeks and not the big corporations, even if I don’t get a receipt.
08'20
Open
08'22
Being issued a correct receipt has become a political issue in Greece, because the state has far too little revenue, and far too many outgoings. As a result, companies have received increasingly frequent visits from the tax authorities recently, as is the case in this restaurant today.
08:42
The inspector thinks it may be cheating the system.
08:48
OT Aristea Atsali, Finance inspector
Yes, often enough, I notice that no receipt will be issued or that only a part of what’s charged is on the bill. What’s more, expenses are sometimes suspiciously high. Then the documents go missing or the purchases have clearly nothing to do with the business at all.
09:10
Greek taxpayers owe the treasury an incredible 32 billion euros. Now, the debt is being collected. But too many tax evaders have settled their affairs with a little payoff to the finance authorities - the Fakilaki.
09:30
OT Aristea Atsali, Finanzinspektorin (Noemi)
Certainly, corruption is always possible if the manager notices that you're open to it. This only works if the manager is on familiar terms with the inspector. Then it’s natural. But if anyone tries to bribe me, I tell them it’s not right and refuse.
09:51
Greece needs to shift a debt mountain of 300 billion €, more than the country earns in a whole year.
10:04
Angeliki Halikia’s family don’t come together until late in the evening. Her husband, who works at the Ministry of Tourism, has taken a second job after his wages were cut by 20 percent. Their daughter is still at school; and their son has taken a student job.
10:21
OT Manessi Nicholas, Father (English)
All the things we know changed. All the things, in the economic way of the State. We pay much more taxes, we get less money, they change all the working conditions. And now we have all the time strikes about all these things, because people are shocked.
10:48
OT Maria Manessi, student
I’m afraid of what’s to come. I will have to work hard and not earn very much. My generation will have to make a great effort but for what? We can’t dream.
11:04
Whether the Greeks can ever pay off their debts, no one knows for sure. So far the state has little experience of saving.
11:14
END OF GREECE
11:20
The economic crisis is a crisis of youth in Spain. 40 percent of the unemployed are under 25. Every third pupil drops out of school early. This is a generation whose future has been stolen. Many have gone back to live with their family because they can no longer claim unemployment benefits. Now comes the fear the government’s austerity measures could break the country.
11:51
The majority of Spaniards fear troubled times, social resignation and the potential increase in violence, according to unemployment officer Lope Morales.
12:02-12:18 OT Lope Morales, unemployment authority, Jaén
The situation is getting worse now, people are suffering the effects of the crisis, because the government can no longer afford to pay unemployment benefit.
12:20
Welfare organizations are pressed more than ever before. They distribute food to the needy every day. The setback is hard for Spain. In the last three decades the country has built up a decent welfare state. Now there are already a million families without a single member in work.
12:42-12:58 OT Jesus Sanchez, Caritas Toledo
If this crisis continues, the poverty situation will worsen dramatically. People can fall back on their families at the moment, but resources will run out soon, even within families.
13:05
The Ebro Delta on the east coast of Spain is a haven for countless species of birds. Rice crops are grown here, but most fields are managed organically, and thanks to this the birds are unaffected by the cultivation. This initiative was made possible by an ethical loans scheme.
13:34-13:54 OT Juan Carlos Cirera, Veterinarian
In Spain, with the crisis, and the level of unemployment what it is, of course people are worried about their jobs. But there is a growing number of people who see that what went wrong was our model of production.
13:55
In the bank for ethical lending in Barcelona the bankers see a chance of a fresh start and a return to old social and economic values.
14:06-14:29 OT Joan Mele, Triodos Bank, Barcelona
Many people are discovering that the economic model we followed in the 20th century doesn’t make sense anymore. There are those who are still fixated with the old model of growth, but if we carry on pursuing growth we’ll only go into crisis again.
14:35
Spain is suffering a painful hangover. But despite the recession and unemployment there are still a surprising number of customers in the bars. Today, it’s thanks to a Spanish footballing triumph.
14:50-14:58 OT woman
Everyone needs to go out and live from time to time. But yes, it’s very noticeable, there are far fewer people out.
14:59-15:16 OT Man
The crisis has affected us a lot, in business, in trade, but there you go, you have to grin and bear it.
15:07
We’ll go on celebrating this, today and tomorrow… but the day after, God only knows
GREECE
15:25
Open
15:28
Back in Greece, our journey takes us away from Athens in the direction of a sunny beach. Across the Peloponnese to the port Kyllini, and from there by ferry to the holiday island of Zakynthos.
15:42
Open
15:44
The Greek islands are among the most popular holiday destinations among Northern Europeans, but this year everything is different. Zakynthos has experienced a dramatic decline in tourists, even if you wouldn’t say so at first glance.
15:58
Open
16:05
This is one of the longest beaches in Greece, in Laganas, a popular 18-30 package holiday destination.
16:14
OT a man (English)
This year is completely, completely less tourists than last year, and the year before also, is nearly 40% down.
16:25
OT Man 2 (English)
We got another 35 sun beds out the back. We stack them up here and every day it’s full. But now, I don’t know.
16:33
Open
16:37
The usually high-volume tourism industry has been particularly hit by the crisis. Dionysis Potamitis is a hotelier on Zakynthos, in the quieter part of the island, in Alykes. It’s become so quiet that he doesn’t know how to survive the season. Only 40 of his 100 beds are occupied, by Czechs, Poles and Serbs, a whole new clientele.
17:04-17:30
OT Dionysis Potamitis, hotelier
I think that the decrease is mainly due to the negative press in those countries. In recent years the region was full of tourists from Northern Europe. But not any more. You probably think that what happened in Athens, with the strikes and riots, affected the whole of Greece.
17:30
Potamitis refurbished two years ago at a cost of 1.7 million. The state wanted to give him half of it. He never received the money, and now he is facing a mountain of debt alone.
17:43
OT Dionysis Potamitis, hotelier
I need to sell this hotel even though my father and my grandfather have already invested in the business. There's lots of work. But since we hardly have any revenue and the banks have stopped lending, I am looking for a buyer.
18:00
And he is not the only one. Currently one in six hotels in Zakynthos is for sale. Most of them at a bargain price.
18:09
END OF GREECE
18:25
Guimaraes was the first capital of Portugal, the birthplace of the nation, a world heritage site. Today the city is being hit hard by the crisis in the textile industry. The north of Portugal was until recently one of the leading locations for textile production. Most of the locals were employed in this industry. In 2005 they lost their jobs, after cheap Chinese products forced them out of the market.
19:02
Nowadays, people have much more time to indulge their hobbies…
19:20-19:41 OT Manuel Leite da Silva, hairdresser
Do you think I would play the guitar if there was no crisis? I play because I need to recover from the stress that the economic crisis brings. At the weekend I go to Porto, where I play with my Fado group. It helps to make ends meet.
19:49
At the unemployment office, the former textile workers are trying recover a little money. They will each get few hundred euros from the proceeds of the sale of textile machinery. A ridiculously small amount considering that they have received no salary for months.
20 `08-20` 33 OT Amelia Brandao, textile worker
I’ve noticed a lot of need, every day it’s worse and every day it gets more complicated. People are losing their jobs and can’t pay their bills. I see a great danger coming our way, and if it continues, there will be more crime and violence in our society.
20 `37
The crisis has affected retired people very badly. Most receive a tiny €200-300 a month pension, and making ends meet is a struggle for many elderly people.
20:54-21:14 OT pensioner
I worked in the textile industry all my life. Now I can hardly eat, since I have to save to afford the drugs I need. I’ve never been through such bad times, never.
21:23
The dramatic increase in poverty is fuelling the crisis even further. Many people who worked until recently, and had dreams of home ownership, now struggle with little to eat.
21:50
The job crisis has engulfed the capital, Lisbon. The Portuguese are concerned that the economic storm is now breaking in earnest. There is barely any investment, and no dynamism. The boom, which Portugal had enjoyed since the mid-nineties, gave it the reputation of a European Tiger economy, but it was mostly financed on credit. And Portugal is not a welfare state like the UK, there are no resources to soften the blow to the poorest. One consequence of the unemployment crisis is the increase in casual prostitution.
22:28
Maria worked as a secretary for five years with a monthly salary of 700 €. She now earns that in two days. After her divorce, then the economic crash, she saw no other option.
22:42 OT Maria
I know women from all social classes who prostitute themselves, even doctors, psychologists, bankers. This is often the only way for them to sustain their lifestyle. I feel the effects of the crisis very little. Our clients come mostly from the upper classes, they’re architects, ambassadors, judges.
GREECE
23:17
Open
23:19
On the next leg of our journey through the summer crisis, we are looking for new strategies out of the crisis for Greece. We make our way from Zakynthos to Crete, the largest island in Greece. The city of Chania is its cultural centre, popular with tourists for its Mediterranean flair.
23:40
Open
23:42
With more than 300 sunshine days a year, Crete is one of the sunniest places in Europe.
23:50
Plantation owner Nikos Kalogerakis saw the potential and invested in solar power. The orange grower has so far built nine solar parks and is planning for more. In Greece the trend for solar energy has been slow to gain momentum. Absurd when there is so much sun, according to Kalogerakis.
24:15
OT Nikos Kalogerakis, Association of Solar investors in Crete
We investors are angry that everything takes so long here. In Greece, we are still in our infancy in terms of solar technology. I have five years to wait for the approval of my solar panels to be processed. In other countries, it’s done in a few months. Everything is more complicated here.
24:42
In the interior of Crete, far from civilization, is an illegal solar plant. Built by a man who would not let bureaucracy get in his way.
24:55
OT Tassos Gourgouras, owner Milia mountain settlement (English)
Every clever person will understand why they didn’t build this system two decades ago, so it’s all about money it’s all about interests and corruption and this kind of thing. I think in the future, from now on, especially since we face a situation which is not very good for the country I think we have to go forward.
25:18
Open
25:24
25 km away from the coast Tassos Gourgouras produces electricity for the 400-year-old mountain village Milia, which he has restored. The old stone cottages are rented to guests from around the world who want nothing more than peace and quiet. The food is excellent - everything fresh from the garden. You don’t notice a slump in bookings here, the crisis doesn’t seem to have reached this retreat.
25:54
OT Tassos Gourgouras, owner Milia mountain settlement (English)
This place doesn’t build [its clientele] through media or big tour operators, it is built from us, so this is a different quality, and means this place will continue to survive into this crisis.
26:14
Some only book a couple of days, but end up staying a whole week.
26:20 (English)
OT a woman
It’s nice to come off, it’s nice to get away a little bit. See these beautiful mountains.
26:26 (English)
OT woman 2
We go hiking, rest, read, eat. You can’t swim here, you can swim in the pine forest
26'37
Here the hard times can be left behind. Generating all its own electricity and growing its own food, the village retreat will survive the crisis untouched.
26:53
END OF GREECE
27:08
The Algarve coast is Portugal's southern tourist magnet, but this year the rush hasn’t happened, the Northern Europeans have stayed at home, as have the Portuguese.
The youth today is anything but carefree. Many need two or three jobs to make ends meet. They have long since lost confidence in the government. Here the family is the most powerful social network.
27:39-27:53 OT woman
My boyfriend and I, we simply can’t afford to take time away from home, our company only hands out temporary contracts. There are a lot of young couples like us in Portugal.
27:56
The Alentejo region of Portugal is sparsely populated, and suffers with high levels of emigration. But the cultural wealth of the region is enormous. Many illustrious cultures passed through Alentejo: the Phoenicians, the Romans, the Visigoths, and the Moors. Monsaraz is one of the region’s most beautiful villages.
28:30
Wine is grown here, very good wine, assures Joao Roquette. He runs one of the largest wineries in the area. There is no question of crisis in his business.
28:48-29:14 OT Joao Roquette, Domaine Esporão
Recently, with the crisis, we have concentrated on the markets in Angola and Brazil, where there is no significant economic downturn. People in these countries know what quality to expect from the Alentejo wines. And the advantage for us is, of course, the linguistic and cultural heritage we share with these countries.
29:22
The Portuguese government appears to have avoided bankruptcy, and its spending cuts are supported by the population, if with gritted teeth.
29:35
Now and then there are still moments here in Portugal, as well as in Greece and Spain, in which one can imagine a better future.
00:13
Headlines like these have been rippling across Europe since May
00:24
To investigate where the crisis all began, we head to Greece, Portugal and Spain.
SPAIN
00:38
This is the region of Castilla La Mancha, Spain. This landscape became famous thanks to the eccentric windmill-jousting Don Quixote, protagonist of Cervantes’ celebrated novel.
00:55
Today, Spain is in economic crisis. The good times are over in Toledo. Amazingly, though, it is difficult to notice the effect of the crisis in the streets. What Spain is experiencing now is the morning after a big night out. For the past few years, the Spanish have been spending money left right and centre. They’ve built houses, bought cars, bought companies, all financed with borrowed money.
01:26-02:03 OT Esther Vazquez, lawyer
Lots of people have made lots of money here, not just through hard work, there’s an incredible amount of corruption here, banks giving out loans to companies who have no collateral. Yes, I think because of these circumstances it’s going to hit us harder in Spain. Our welfare state has been overburdened for years now; we can’t afford to pay social security, unemployment benefits, pensions etc. I don’t think Spain will ever be the same again
02 :06
The economic decline began in real estate.
02:12 (close-up buildings)
This group of abandoned buildings is called Sesena. Here the housing bubble which once ballooned, Is now visibly burst. Sesena is just one of many ghost towns in Spain. 13 000 apartments were to have been built in the middle of this wasteland. 5600 units were built, but only half were completed.
During the boom years the banks handed out loans without hesitation, even to families with no regular income. Now the property has flooded back onto the market, for rent and for sale at miniature prices.
02:52-03:18 OT Juan Dominguez, Housing Manager
There have been many difficult cases here, because of the crisis, because of the situation in Spain, the increase in unemployment. Many people can’t keep up with their mortgage repayments; so the banks have been forced to repossess the homes, of the people who’ve been made redundant. The crisis is very serious here in Spain.
03:20
The province of Jaén is the largest area in Europe for olive cultivation. Until recently, business was good here. Now prices are rock bottom, and this year the olive harvest will cost as much as the proceeds from the sale of oil. Spanish oil merchants haven’t yet succeeded in breaking into new markets.
03:46
At Liboro Sanchez’ press the machines are at a stand still. The olive farmer can barely imagine a future for himself and his family anymore.
04:02-04:41 OT Liboro Sanchez Rodriguez, plantation owner
We need to employ many people for the olive harvest, but the oil has virtually no value anymore. We can no longer keep up with the competition. We have to cut costs, and we can no longer produce the same quality as before, because we’re using machines now and not picking by hand. We can’t employ guest workers anymore, and they blame us. The worst is the uncertainty. We have to save at every turn.
04:43
A few kilometres down the road is the small village of Beas de Segura. In 2004, the villagers became a lottery sensation when they won the ‘El Gordo’ jackpot. But the new wealth has not brought all luck. There are many instances of estranged families, says the baker, Juan Antonio. It was he who bought the ticket and sold shares alongside his bread. Almost all of his customers won a part of the €180 million winnings.
5 `16-5` 37 OT Juan Antonio Herrera, baker, Beas de Segura
Being rich is very complicated, you have to know how to manage it or you’ll run out of money very quickly. When you go to buy something, all of a sudden it costs twice as much because you’ve won the lottery. If they know you’ve won they want their share.
05:40
In the local bar you can hear many anecdotes of failed millionaires and the petty jealousies which came after the windfall.
05:50-06:17 OT Francisco Munoz
The people who won went straight away to invest their money but they were in over their heads, and they ended up losing it all. They speculated, the banks took the money promising high interest and then when the banks caved in they were left with nothing.
GREECE
06:30
Two and a half thousand miles east, we arrive in Athens, where the crisis has also hit hard. Greece is only just afloat still thanks to the huge European bailout. Now there are calls on the country and its people to start saving.
06:46
The Athens Metro has been on and off strike for weeks. Today, public transport is at a standstill.
06:55
For the taxi drivers this means good business, business they sorely need.
07:01
OT Dimitris Antononakopoulos, taxi driver
Before, I could make ends meet when I’d work 14 hours. Now I drive up to 20 hours a day. There is no other way I can live, I have to say yes.
07:17 OT taxi driver
I’ve joked with my wife we should sell our two children. We could save a lot!
07:26
Open
07:30
The former wealth of the Greeks was largely financed on credit. Now the bill has come through.
07:38
Angeliki Halikia is a typical middle class woman, She is married with 2 children but was recently made redundant. Nowadays families’ income are going down while prices continue to rise. This means no more holidays, no more nightlife, and buying only what is absolutely necessary.
07:59
OT Angeliki Halikia, housewife
Life has become so expensive since VAT went up, even here at the market. Still, I prefer to buy in the small, local markets to support Greeks and not the big corporations, even if I don’t get a receipt.
08'20
Open
08'22
Being issued a correct receipt has become a political issue in Greece, because the state has far too little revenue, and far too many outgoings. As a result, companies have received increasingly frequent visits from the tax authorities recently, as is the case in this restaurant today.
08:42
The inspector thinks it may be cheating the system.
08:48
OT Aristea Atsali, Finance inspector
Yes, often enough, I notice that no receipt will be issued or that only a part of what’s charged is on the bill. What’s more, expenses are sometimes suspiciously high. Then the documents go missing or the purchases have clearly nothing to do with the business at all.
09:10
Greek taxpayers owe the treasury an incredible 32 billion euros. Now, the debt is being collected. But too many tax evaders have settled their affairs with a little payoff to the finance authorities - the Fakilaki.
09:30
OT Aristea Atsali, Finanzinspektorin (Noemi)
Certainly, corruption is always possible if the manager notices that you're open to it. This only works if the manager is on familiar terms with the inspector. Then it’s natural. But if anyone tries to bribe me, I tell them it’s not right and refuse.
09:51
Greece needs to shift a debt mountain of 300 billion €, more than the country earns in a whole year.
10:04
Angeliki Halikia’s family don’t come together until late in the evening. Her husband, who works at the Ministry of Tourism, has taken a second job after his wages were cut by 20 percent. Their daughter is still at school; and their son has taken a student job.
10:21
OT Manessi Nicholas, Father (English)
All the things we know changed. All the things, in the economic way of the State. We pay much more taxes, we get less money, they change all the working conditions. And now we have all the time strikes about all these things, because people are shocked.
10:48
OT Maria Manessi, student
I’m afraid of what’s to come. I will have to work hard and not earn very much. My generation will have to make a great effort but for what? We can’t dream.
11:04
Whether the Greeks can ever pay off their debts, no one knows for sure. So far the state has little experience of saving.
11:14
END OF GREECE
11:20
The economic crisis is a crisis of youth in Spain. 40 percent of the unemployed are under 25. Every third pupil drops out of school early. This is a generation whose future has been stolen. Many have gone back to live with their family because they can no longer claim unemployment benefits. Now comes the fear the government’s austerity measures could break the country.
11:51
The majority of Spaniards fear troubled times, social resignation and the potential increase in violence, according to unemployment officer Lope Morales.
12:02-12:18 OT Lope Morales, unemployment authority, Jaén
The situation is getting worse now, people are suffering the effects of the crisis, because the government can no longer afford to pay unemployment benefit.
12:20
Welfare organizations are pressed more than ever before. They distribute food to the needy every day. The setback is hard for Spain. In the last three decades the country has built up a decent welfare state. Now there are already a million families without a single member in work.
12:42-12:58 OT Jesus Sanchez, Caritas Toledo
If this crisis continues, the poverty situation will worsen dramatically. People can fall back on their families at the moment, but resources will run out soon, even within families.
13:05
The Ebro Delta on the east coast of Spain is a haven for countless species of birds. Rice crops are grown here, but most fields are managed organically, and thanks to this the birds are unaffected by the cultivation. This initiative was made possible by an ethical loans scheme.
13:34-13:54 OT Juan Carlos Cirera, Veterinarian
In Spain, with the crisis, and the level of unemployment what it is, of course people are worried about their jobs. But there is a growing number of people who see that what went wrong was our model of production.
13:55
In the bank for ethical lending in Barcelona the bankers see a chance of a fresh start and a return to old social and economic values.
14:06-14:29 OT Joan Mele, Triodos Bank, Barcelona
Many people are discovering that the economic model we followed in the 20th century doesn’t make sense anymore. There are those who are still fixated with the old model of growth, but if we carry on pursuing growth we’ll only go into crisis again.
14:35
Spain is suffering a painful hangover. But despite the recession and unemployment there are still a surprising number of customers in the bars. Today, it’s thanks to a Spanish footballing triumph.
14:50-14:58 OT woman
Everyone needs to go out and live from time to time. But yes, it’s very noticeable, there are far fewer people out.
14:59-15:16 OT Man
The crisis has affected us a lot, in business, in trade, but there you go, you have to grin and bear it.
15:07
We’ll go on celebrating this, today and tomorrow… but the day after, God only knows
GREECE
15:25
Open
15:28
Back in Greece, our journey takes us away from Athens in the direction of a sunny beach. Across the Peloponnese to the port Kyllini, and from there by ferry to the holiday island of Zakynthos.
15:42
Open
15:44
The Greek islands are among the most popular holiday destinations among Northern Europeans, but this year everything is different. Zakynthos has experienced a dramatic decline in tourists, even if you wouldn’t say so at first glance.
15:58
Open
16:05
This is one of the longest beaches in Greece, in Laganas, a popular 18-30 package holiday destination.
16:14
OT a man (English)
This year is completely, completely less tourists than last year, and the year before also, is nearly 40% down.
16:25
OT Man 2 (English)
We got another 35 sun beds out the back. We stack them up here and every day it’s full. But now, I don’t know.
16:33
Open
16:37
The usually high-volume tourism industry has been particularly hit by the crisis. Dionysis Potamitis is a hotelier on Zakynthos, in the quieter part of the island, in Alykes. It’s become so quiet that he doesn’t know how to survive the season. Only 40 of his 100 beds are occupied, by Czechs, Poles and Serbs, a whole new clientele.
17:04-17:30
OT Dionysis Potamitis, hotelier
I think that the decrease is mainly due to the negative press in those countries. In recent years the region was full of tourists from Northern Europe. But not any more. You probably think that what happened in Athens, with the strikes and riots, affected the whole of Greece.
17:30
Potamitis refurbished two years ago at a cost of 1.7 million. The state wanted to give him half of it. He never received the money, and now he is facing a mountain of debt alone.
17:43
OT Dionysis Potamitis, hotelier
I need to sell this hotel even though my father and my grandfather have already invested in the business. There's lots of work. But since we hardly have any revenue and the banks have stopped lending, I am looking for a buyer.
18:00
And he is not the only one. Currently one in six hotels in Zakynthos is for sale. Most of them at a bargain price.
18:09
END OF GREECE
18:25
Guimaraes was the first capital of Portugal, the birthplace of the nation, a world heritage site. Today the city is being hit hard by the crisis in the textile industry. The north of Portugal was until recently one of the leading locations for textile production. Most of the locals were employed in this industry. In 2005 they lost their jobs, after cheap Chinese products forced them out of the market.
19:02
Nowadays, people have much more time to indulge their hobbies…
19:20-19:41 OT Manuel Leite da Silva, hairdresser
Do you think I would play the guitar if there was no crisis? I play because I need to recover from the stress that the economic crisis brings. At the weekend I go to Porto, where I play with my Fado group. It helps to make ends meet.
19:49
At the unemployment office, the former textile workers are trying recover a little money. They will each get few hundred euros from the proceeds of the sale of textile machinery. A ridiculously small amount considering that they have received no salary for months.
20 `08-20` 33 OT Amelia Brandao, textile worker
I’ve noticed a lot of need, every day it’s worse and every day it gets more complicated. People are losing their jobs and can’t pay their bills. I see a great danger coming our way, and if it continues, there will be more crime and violence in our society.
20 `37
The crisis has affected retired people very badly. Most receive a tiny €200-300 a month pension, and making ends meet is a struggle for many elderly people.
20:54-21:14 OT pensioner
I worked in the textile industry all my life. Now I can hardly eat, since I have to save to afford the drugs I need. I’ve never been through such bad times, never.
21:23
The dramatic increase in poverty is fuelling the crisis even further. Many people who worked until recently, and had dreams of home ownership, now struggle with little to eat.
21:50
The job crisis has engulfed the capital, Lisbon. The Portuguese are concerned that the economic storm is now breaking in earnest. There is barely any investment, and no dynamism. The boom, which Portugal had enjoyed since the mid-nineties, gave it the reputation of a European Tiger economy, but it was mostly financed on credit. And Portugal is not a welfare state like the UK, there are no resources to soften the blow to the poorest. One consequence of the unemployment crisis is the increase in casual prostitution.
22:28
Maria worked as a secretary for five years with a monthly salary of 700 €. She now earns that in two days. After her divorce, then the economic crash, she saw no other option.
22:42 OT Maria
I know women from all social classes who prostitute themselves, even doctors, psychologists, bankers. This is often the only way for them to sustain their lifestyle. I feel the effects of the crisis very little. Our clients come mostly from the upper classes, they’re architects, ambassadors, judges.
GREECE
23:17
Open
23:19
On the next leg of our journey through the summer crisis, we are looking for new strategies out of the crisis for Greece. We make our way from Zakynthos to Crete, the largest island in Greece. The city of Chania is its cultural centre, popular with tourists for its Mediterranean flair.
23:40
Open
23:42
With more than 300 sunshine days a year, Crete is one of the sunniest places in Europe.
23:50
Plantation owner Nikos Kalogerakis saw the potential and invested in solar power. The orange grower has so far built nine solar parks and is planning for more. In Greece the trend for solar energy has been slow to gain momentum. Absurd when there is so much sun, according to Kalogerakis.
24:15
OT Nikos Kalogerakis, Association of Solar investors in Crete
We investors are angry that everything takes so long here. In Greece, we are still in our infancy in terms of solar technology. I have five years to wait for the approval of my solar panels to be processed. In other countries, it’s done in a few months. Everything is more complicated here.
24:42
In the interior of Crete, far from civilization, is an illegal solar plant. Built by a man who would not let bureaucracy get in his way.
24:55
OT Tassos Gourgouras, owner Milia mountain settlement (English)
Every clever person will understand why they didn’t build this system two decades ago, so it’s all about money it’s all about interests and corruption and this kind of thing. I think in the future, from now on, especially since we face a situation which is not very good for the country I think we have to go forward.
25:18
Open
25:24
25 km away from the coast Tassos Gourgouras produces electricity for the 400-year-old mountain village Milia, which he has restored. The old stone cottages are rented to guests from around the world who want nothing more than peace and quiet. The food is excellent - everything fresh from the garden. You don’t notice a slump in bookings here, the crisis doesn’t seem to have reached this retreat.
25:54
OT Tassos Gourgouras, owner Milia mountain settlement (English)
This place doesn’t build [its clientele] through media or big tour operators, it is built from us, so this is a different quality, and means this place will continue to survive into this crisis.
26:14
Some only book a couple of days, but end up staying a whole week.
26:20 (English)
OT a woman
It’s nice to come off, it’s nice to get away a little bit. See these beautiful mountains.
26:26 (English)
OT woman 2
We go hiking, rest, read, eat. You can’t swim here, you can swim in the pine forest
26'37
Here the hard times can be left behind. Generating all its own electricity and growing its own food, the village retreat will survive the crisis untouched.
26:53
END OF GREECE
27:08
The Algarve coast is Portugal's southern tourist magnet, but this year the rush hasn’t happened, the Northern Europeans have stayed at home, as have the Portuguese.
The youth today is anything but carefree. Many need two or three jobs to make ends meet. They have long since lost confidence in the government. Here the family is the most powerful social network.
27:39-27:53 OT woman
My boyfriend and I, we simply can’t afford to take time away from home, our company only hands out temporary contracts. There are a lot of young couples like us in Portugal.
27:56
The Alentejo region of Portugal is sparsely populated, and suffers with high levels of emigration. But the cultural wealth of the region is enormous. Many illustrious cultures passed through Alentejo: the Phoenicians, the Romans, the Visigoths, and the Moors. Monsaraz is one of the region’s most beautiful villages.
28:30
Wine is grown here, very good wine, assures Joao Roquette. He runs one of the largest wineries in the area. There is no question of crisis in his business.
28:48-29:14 OT Joao Roquette, Domaine Esporão
Recently, with the crisis, we have concentrated on the markets in Angola and Brazil, where there is no significant economic downturn. People in these countries know what quality to expect from the Alentejo wines. And the advantage for us is, of course, the linguistic and cultural heritage we share with these countries.
29:22
The Portuguese government appears to have avoided bankruptcy, and its spending cuts are supported by the population, if with gritted teeth.
29:35
Now and then there are still moments here in Portugal, as well as in Greece and Spain, in which one can imagine a better future.