Can't Pay? Won't Pay!

[aeolium]

If there's anything worthwhile to emerge from the Greek economic crisis, it is that it has shone a very harsh light on a misconceived economic project, the Euro (or at least misconceived in the way it was implemented). Even if it was the case that Greece's problems (and those of some other European countries) were not caused by their eurozone membership but by the wider financial crisis, corruption, widespread tax evasion etc, it's surely the case that being in the euro has made it much more difficult for them. This article seems to me to be a clear statement of the predicament and the very difficult options now available to the Greeks, and indeed to the EU. Should the EU continue to pile on additional debt - almost certainly unrepayable - again and again to stave off the two 'unthinkable' options, default or a defection from the eurozone? I think the Greeks have almost reached the point of fearing Europeans bringing gifts more than the alternatives. Perhaps European leaders should think of the euro as a means to an end rather than an end in itself, and if the sacrifices to maintain the integrity of the eurozone result in huge immiseration and near-revolutionary unrest then it is the euro project which requires rethinking.

[Dave2002]

http://en.wikipedia.org/wiki/Dario_Fo

[teamsaint]

one huge currency.
Enormously (and increasingly)powerful central banks.
IMF and world banks telling us all how to run our affairs, and having the developing world in their grip.
Politcally centralised continents.
european leaders centralising everything from money to herbal remedies.

We may have stopped wars inside Europe, (and exported them elsewhere) but we have much to fear from big government, I am afraid.

(ps you needed photo iD to get into the RAH two weeks ago for a concert......BB is watching you.)

[Richard Tarleton]

Should the EU continue to pile on additional debt - almost certainly unrepayable - again and again to stave off the two 'unthinkable' options, default or a defection from the eurozone? I think the Greeks have almost reached the point of fearing Europeans bringing gifts more than the alternatives. Perhaps European leaders should think of the euro as a means to an end rather than an end in itself, and if the sacrifices to maintain the integrity of the eurozone result in huge immiseration and near-revolutionary unrest then it is the euro project which requires rethinking.

Greece does not make or do anything which anyone else wants, apart from export olive oil and marble, so its prospects of growing its economy and earning money to pay its debts seem remote (unlike Ireland which is an enterprising country). It is particularly riddled with corruption, and its pension arrangements are, or have been, ludicrously unsustainable - retirement at 55, unmarried daughters inheriting fathers' pensions - I don't think that's apocryphal. Its sole prospects are as a tourist destination, which would be greatly helped by devaluation (impossible under the Euro). It should never have joined the Euro, and is a completely unsuitable member of the Euro club. It should probably default.

[french frank]

It might help their exports and tourism if they switched to GBP instead.

[Richard Tarleton]

Would that make us responsible for them?

[french frank]

Would that make us responsible for them?

I don't think so. It would be their decision/funeral. There are some countries now using the euro even though they're not in the EU (e.g. Montenegro) and I can't think that the EU could be held responsible for their debts.