Posts Tagged ‘Eurozone’

To ask ..or not to ask..

June 6, 2012

Questions among -not only- Greeks these days:

  • Will a stable government stem from the elections on June 17th?
  • Are the Greeks ready for making an alternative (radical left) choice?
  • Is the above choice a rational one?
  • Is there really an alternative choice in Greece? …….Greece?…..Which Greece?
  • Could a disorderly Greek exit cause a contagion and destabilisation in EU? ………EU? …….Which EU?

 

 

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When Democracy, Sovereignty and ‘well-being’ collide

June 1, 2012

Daniel Gros at Project Syndicate raises the point of the ‘sovereign debt’ vs. the ‘sovereignty of the people’.

 

The broader message from the Greek and French elections is that the attempt to impose a benevolent creditors’ dictatorship is now being met by a debtors’ revolt. Financial markets have reacted as strongly as they have because investors recognize that the “sovereign” in sovereign debt is an electorate that can simply decide not to pay.

This is already the case in Greece, but the fate of the euro will be decided in the larger, systemically important countries like Italy and Spain. Only determined action by their governments, supported by their citizens, will show that they merit unreserved support from the rest of the eurozone. At this point, nothing less can save the common currency.

Much ado about Nothing

February 16, 2012

During the last months I am contemplating -me and the rest of the Greeks alike – the default of the Greek economy as a pragmatic scenario. And, instantly I become more European, thus even more sceptical about the whole European project, I realise its fragile character and its only certain dimension: its uncertainty.

Martin Wolf in today’s FT

..’The Eurozone is in a form of limbo: it is neither so deeply integrated that break-up is unconceivable, nor so lightly integrated that break-up is tolerable’…

En attendant…….?

November 5, 2011

George Papandreou’s risky gamble re referrendum has backfired. Although he was still able to get a vote of confidence yesterday, the political landscape in Greece will soon change under the new government of national unity soon to be formed.

lessons?

  • when we are called to take action, i.e. to choose and directly express our support or opposition, we are hesitant and step back. Choice demands action, and action demands responsibility…
  • Mr Samaras, New Democracy’s leader, has been constantly opposed the EU-IMF reform programme. He now expects the call of elections as if he is ready to oppose all the programmes, the implementation of which is necessary if we do not wish the default scenario to come true. He did not even attend the (possibly last one under his current position) Papandreou’s speech in the Parliament yesterday.  Neither did the rest of New Democracy parliamentarians, continuing to demonstrate a well-known behaviour driven by personal or party’s interests. Is Roubini right in his suggestions about the opposition party?
  • The Greek leftist parties continue to reject facing the reality and making viable propositions about what to be done.
  • Greece’s credibility has been traumatised, although there are voices around celebrating Papadreou’s decision to let people decide. But he has already infuriated his partners in and outside Greece.
  • EU’s credibility is also at stake. Big questions on the very nature of the state, sovereignty and democracy still remain open. And when the European weakest link is able to put the world markets in turbulence for 24 hours, it is obvious that the cloud of uncertainty does not only surround Greece…

‘B’ for Beijing but not …for Brussels

September 22, 2011

Nouriel Roubini in yesterday’s FT argued that Greece should both default and exit the eurozone.

Martin Wolf today in the same paper states that ‘..once the taboo is broken, the possibility of exit must be examined‘.

Greece is not the only passenger on the Eurozone’s boat…and the boat is sinking. I am not sure if the boat lacks a good captain but certainly something is going wrong with its compass…the orientation system does not seem to have worked so far.

And for those ones who wonder whether China can provide the much needed compass I am just providing Yao Yang‘s words in today’s FT:

As seen from Beijing, the euro is a European affair. And the Europeans will have to correct their own mistakes.