The convolutions going on in Europe over a possible Greek Eurozone exit are something to behold. They display many of the worst features of the zone and the EU straitjackets and the consequences of past misdeeds, distortions of figures and political manipulation. Greece never really qualified to join the Euro in 1981 It was always a fix .That was pretty public knowledge but blind eyes were turned and the situation massaged to even get them on board. On the part of France in particular the measures were proactive rather than passive.
Now the chickens have come home to roost. Build anything, a house, a business, a state on foundations of sand or none at all. Sooner or later it will collapse or cost a fortune in artificial respiration to keep going. Even then it will almost always eventually collapse at a much greater cost than if it had been sorted out in the first place..
Right now the ever righteous Mr Junker complains of having been betrayed. At the same time he says the door is still open for more negotiations. The only message he is giving is that the Euro club are desperate to avoid Greece dropping the currency or even out of the Union. This isn't because the Euro or EU love Greece. It's because they are terrified of the loss of face occasioned by the admission that a one size fits and works all northern and southern Europe states alike. It never could and the sensible kept well clear. The size, economies, activities, national temperements and needs of the member states vary enormously. Their inability under the Euro to do anything with their currencies to even out the effects of diversity out leaves them hamstrung.
Also much feared in monolithic Brussels is the idea that even one defection from the Eurozone might lead other states to question the whole operation of the EU itself. Britain is already doing that although rather cackhandedly by positioning its demands for as being for its own benefit rather than for all the members of the creaking, centralising ,going nowhere, hugely expensive ,self serving and barely democratic institution.
One can understand the Greeks still thinking that Mr Junker and friends will blink first. They usually do if they see their own interests and pedestals threatened.
There should be no further discussions. Ireland and Portugal in particular were forced to swallow the austerity medicine ,took the pain and came out of their criseas well. They and others would be rightfully indignant if Greece got of its self made hook. If Greece insists on its course of rejecting economic reforms, aka austerity, and claiming it can get its accounts straight by soaking the rich and penalising business then it should be allowed to do so and let go. Despite all the howls about serious consequences for all, nobody knows what the effects will be. The only way to find out must be to let nature take its course and manage the downsides as they appear. This is by far the most practical and best medium and long term solution and almost certainly the cheapest. It will also highlight the fact that the only people who can get Greece back on the road are the Greeks.
Footnote: The biggest question around a Greek exit from the currency and/or the EU is how much it would turn the country's left wing government to a mischievous Russia and what that would really mean.
Now the chickens have come home to roost. Build anything, a house, a business, a state on foundations of sand or none at all. Sooner or later it will collapse or cost a fortune in artificial respiration to keep going. Even then it will almost always eventually collapse at a much greater cost than if it had been sorted out in the first place..
Right now the ever righteous Mr Junker complains of having been betrayed. At the same time he says the door is still open for more negotiations. The only message he is giving is that the Euro club are desperate to avoid Greece dropping the currency or even out of the Union. This isn't because the Euro or EU love Greece. It's because they are terrified of the loss of face occasioned by the admission that a one size fits and works all northern and southern Europe states alike. It never could and the sensible kept well clear. The size, economies, activities, national temperements and needs of the member states vary enormously. Their inability under the Euro to do anything with their currencies to even out the effects of diversity out leaves them hamstrung.
Also much feared in monolithic Brussels is the idea that even one defection from the Eurozone might lead other states to question the whole operation of the EU itself. Britain is already doing that although rather cackhandedly by positioning its demands for as being for its own benefit rather than for all the members of the creaking, centralising ,going nowhere, hugely expensive ,self serving and barely democratic institution.
One can understand the Greeks still thinking that Mr Junker and friends will blink first. They usually do if they see their own interests and pedestals threatened.
There should be no further discussions. Ireland and Portugal in particular were forced to swallow the austerity medicine ,took the pain and came out of their criseas well. They and others would be rightfully indignant if Greece got of its self made hook. If Greece insists on its course of rejecting economic reforms, aka austerity, and claiming it can get its accounts straight by soaking the rich and penalising business then it should be allowed to do so and let go. Despite all the howls about serious consequences for all, nobody knows what the effects will be. The only way to find out must be to let nature take its course and manage the downsides as they appear. This is by far the most practical and best medium and long term solution and almost certainly the cheapest. It will also highlight the fact that the only people who can get Greece back on the road are the Greeks.
Footnote: The biggest question around a Greek exit from the currency and/or the EU is how much it would turn the country's left wing government to a mischievous Russia and what that would really mean.
