Introduction

The Latin Monetary Union (LMU) was a treaty between European states to standardize coinage, primarily in terms of silver and gold content, promoting trade between the member states. In 1908, Greece was expelled from this union due to a reduction in the gold content of its coins. However, in 1910, the country was re-admitted to the LMU under the circumstances that followed the Goudi Coup and the subsequent reforms implemented by Eleftherios Venizelos. This article delves into the specific events and reforms that led to Greece's return to the LMU.

Economic Challenges and the Goudi Coup

In 1898, Greece faced a major setback when it lost a war with the Ottoman Empire and was obligated to pay substantial war indemnities. This dire financial situation necessitated the raising of loans from foreign creditors, leading to the establishment of the International Financial Commission. This commission took control of Greece's public finances from 1898 until World War II.

The International Financial Commission and the Greek Economy

The commission's control over Greek finances was strict and comprehensive, ensuring that revenues were collected and civil services were maintained, which was crucial for debt repayment. This intervention helped restore confidence in the Greek drachma. By 1910, the drachma was revalued to reach parity with the French franc, marking a significant turning point.

Eleftherios Venizelos and the Reform Agenda

Although the exact date of Greece's re-admission to the LMU is not definitively known, the evidence points to the reforms initiated by Eleftherios Venizelos as the primary reason for this change. Venizelos, a prominent Greek statesman, introduced a series of sweeping changes that fundamentally altered the economic and social landscape of Greece.

Limited Tax Evasion and Socially Just Labor Laws

One of the key reforms Venizelos implemented was a significant reduction in tax evasion, ensuring a more stable and reliable revenue stream for the government. Simultaneously, he introduced socially just labor laws that improved the working conditions for Greeks. These policies led to a budget surplus in 1911 and 1912, which further bolstered the country's financial stability.

The Balkan Wars and the Greco-Turkish War of 1921

These financial and social reforms also played a crucial role in financing the Greek war efforts during the Balkan Wars (1912–1913) and the Greco-Turkish War of 1921. The stability and revenue generated from these reforms provided the necessary resources for Greece to engage in these conflicts.

Eleftherios Venizelos' Diplomatic Acumen

Beyond the economic and social reforms, Venizelos was also renowned for his diplomatic skills. It is plausible that his ability to navigate international relations and secure favorable positions for Greece contributed to the country's re-admission to the LMU. However, it is also possible that the reforms themselves were sufficient to prompt the union to reconsider Greece's membership.

Conclusion

Greece's re-admission to the Latin Monetary Union in 1910 was a result of a combination of economic reforms, social policies, and diplomatic maneuvering. The re-entry was a testament to the effectiveness of Venizelos's leadership and the significant improvements made to the Greek economy. This event not only strengthened Greece's financial position but also set the stage for its eventual resurgence in the interwar period.