The biggest point that is rarely raised in this whole debate is that Germany has benefited for the last decade from the low Euro; which has been courtesy of the Greeks. In the last decade the Germans have had their main stock index gain some €40T (much more if you take from 2003). The increased tax income to the German state over this period would handily pay off Greece's debts. So Germany has benefited from Greece over all these years and now they refuse to pay for that benefit.<p>This is a case of ideological holier than thou treatment, a bureaucratic banality of evil. Meanwhile people sleep on the streets in Greece, from children to pensioners.<p>Both the past Greek governments shouldn't have borrowed the money, and the past European governments shouldn't have lent them the money; now both sides will suffer. And I'm starting to get the feeling that only one side will learn from this (and it isn't the EU bureaucrats, calling them technocrats is too generous; they follow the rules and ideologies even when they are wrong).
A very readable and insightful piece by one of the great (in some meanings of the word) philosophers today.<p>A somewhat parallel piece by Zizek a year ago: <a href="http://www.newstatesman.com/politics/2014/06/slavoj-i-ek-only-radicalised-left-can-save-europe" rel="nofollow">http://www.newstatesman.com/politics/2014/06/slavoj-i-ek-onl...</a>
I am an ultra-free-market Objectivist. Still, I think that the Greeks voted correctly.<p>The problem is: even in a democratic country, you are not accountable to where and how much your government's borrowing. Governments do not produce money; they take it from taxes. Which means: _they_ are borrowing money, and _you_ have to repay it.<p>While being responsible for debts is a good thing, it only concerns your own debts, not something that was made on your behalf. It's the businesses who will suffer the most (as they are taxable), and they are innocent.
<i>"...only a new “heresy” (represented at this moment by Syriza) can save what is worth saving in European legacy: democracy, trust in people, egalitarian solidarity."</i><p>I'm glad the Greeks voted No. The zeal with which austerity politics has been unflinchly pursued has caused enormous hardship for people in Greece and across Europe. But do people in Europe really feel a sense of solidarity with each other?<p>I'm from the UK, a country often lambasted for it's aloof and isolationist attitude to Europe. I used to be embarrased by the scepticism shown by British MPs towards closer EU integration. Now, however, I'm just a bit indifferent. The reason? I've seen clearly that self-interest among European countries (almost) always trumps a greater collective good. Yet the press and politicians continue to pretend otherwise. I don't blame individual countries for doing this, but I wish they would drop the pretence that they are pursuing a greater collective goal for Europe when in fact they are often pursuing a best-for-my-country approach. And who can blame them when it will always be to their own electorates that they must first appeal?<p>The migrant crisis in the Mediterranean really amplified this for me. I was ashamed of the UK response, but no other country was willing to share fairly the number of migrants rescued either. And even the rhetoric around Greece is rarely about solidarity and common European humanism, but instead about keeping the integrity of the financial system in place.<p><a href="http://www.bbc.co.uk/news/business-33132595" rel="nofollow">http://www.bbc.co.uk/news/business-33132595</a>
Ultimately, the market has to bare the loss of the Greek government. It's really no different than when a corporation fails to pay its debts. Mind you, it does cause a massive decline in the country's economy. I think the IMF has the right idea, give Greece a means to grow its economy and put a hold on all debt payments. To do otherwise, I think is to court failure of the entire Eurozone.
It's a bit amusing how suddenly everyone seems to be an expert in economics.<p>In any case, what all those people are missing is this: The Greeks signed the contract. The contract hasn't changed since then. If they are "correct" now they shouldn't been willing to sign the contract.<p>Sometimes, the truth hurts.
My Great Depression Economics professor at university had the opinion that the newly formed ECU was going to be temporary or at least limited in scope, due to the lack of exchange float - similar to the gold standard. I also see a lack of "political float" here. op/ It's too idealistic to expect separate nation states to ignore their differences. /op