As a relatively detached observer (I live in neither the Eurozone nor the EU), I find this ongoing wrangling between Greece and the German-led austerity bloc extremely interesting, but I also find myself unable to completely take anyone's side. As a fiscal conservative my sympathies tend naturally toward Germany, and I have a certain degree of respect for Merkel and Schauble in standing up for the their own people and for the principles which underpin Germany's own economic success.
However, I'm also in the same camp as British right-wingers who dislike the EU and find the concept of a single currency (and those who continue to try to prop it up) utterly ludicrous. As much as I sympathize with the Germans, I can't see an agreement which imposes ever more austerity on the Greeks while keeping them tethered to the euro as any kind of successful outcome. We keep hearing that Greece leaving the euro wouldn't solve its problems, that what it really needs are structural reforms. That may be true, but I also think that those problems can't be solved without Greece first recovering its own monetary sovereignty, so that in the short term it can devalue and regain some degree of competitiveness. Unfortunately all sides in this, from German fiscal hawks to Greek socialists, see Greece remaining in the euro as a best case scenario. That's why any agreement reached is doomed to failure...Europe is stuck on a roundabout and cant find an exit; For the last 5 years its been fixated on a failed Euro conceit. Fire hosing our money at the Greek and other receiving nations, whilst policies for boosting growth across Europe have been cast aside. What a Joke. Lets get out fast. Cant wait for 2016 referendum...The IMF should have nothing to do with this deal. It was not created to prop up a currency union, when the policies of the major player in the currency union are making a bad situation even worse. Not much point the Greeks holding further elections either. If they remain in the Euro, no Greek Government will be able to change the terms of their serfdom. They need to leave the Euro and reclaim the ability to govern their own country. Varofakis leaving the Tsipras Government after the Referendum is looking like a clever move. Perhaps he's readying himself for a comeback.
No comments:
Post a Comment