Chattering classes miss point on Greece, EU

The plain truth is that this is not about saving Greece; it’s about saving the Eurozone. Brussels is terrified that Grexit might start a Club Med stampede for the exit. Monetary union has been a catastrophic failure, and we are witnessing its death agonies

The general opinion amongst the chattering classes is that the new Greek PM, Alexis Tsipras, has got himself into a lose-lose situation. If he does a deal with the hated Troika, the IMF, ECB and EU, he is dead meat. His political support will evaporate overnight.

If he doesn’t, the Greek economy will collapse and Greece will have no option but to default and exit the Eurozone. Both views are wrong. To demonstrate this does not need the expertise of a Nobel economics laureate.

  • Hard Little Machine

    Other countries won’t flee. Not even Greece will flee. All that will happen is that Merkel will eventually cave and be forced to forgive most of their debt w/o few if any concessions. Everyone back to the beach !!

    • Frau Katze

      I suspect that outcome too. But you never know.

  • Norman_In_New_York

    Of course, it would be better if the EU dissolved and its members went back to reciprocal treaties, but the ruling classes have too much invested in the status quo.

  • dukestreet

    EU never should have been created in the first place. The collapse of countries are already in play. Greeks will have to pay for their free lunch some how. I suspect it will be painful for people used to such ease. If it doesn’t happen, more of Europe will suffer for allowing Greece to get away with it.

    • Frau Katze

      The Eurozone was a really bad idea. Might have worked if it had been restricted to Northern Europe.