The Euro Doublestep

At Room for Debate four experts discuss whether ratings should be dropped as a way out.  Meanwhile Floyd Norris suggests that Greeks deserve a voice; “American voters did not take well to such condescension from those better off than themselves” during the 1920’s, so why should the Greeks.  Regardless, we know that this is big:

Either a large part of the Continent will move much closer to a federal government, with common fiscal policies and a substantial loss of sovereignty for many nations, or it will spin apart, with possibly severe economic and financial consequences.

via Why Not Give the Greeks Their Say? –


2 thoughts on “The Euro Doublestep”

  1. I believe that no matter what Europe tires to do, it is not going to end pretty. First Greece calls for a referendum but that makes the markets and leadership mad. Now the PM is trying to form a unity government because he is on the way out, and Merkel and Sarkowzy just want it all to end. They have offered an ultimatum. To be honest, this seems to be one of the elaborate, surprising multilateral efforts in a while. no matter what anybody does, it tends just to make things worse. But you can’t negotiate much more, and it fells as if europe just won’t work. Greece can’t make up its own mind so how can we expect us to make up our minds on these issues?

    Here it explains what Greece is trying to do and what problems can be solved. It seems as if no matter what the result is, chaos will rule in the end of it all.

  2. There have been several articles along with this one posted, where the Greek referendum has been hailed as a positive and healthy move for democracy. In reading these articles, the pervading sentiment is that the Greeks consider this to be a real “Declaration of Independence” moment. One article points out the tough austerity measures that have left Greeks feeling the EU is overtaking their self-governance (1). Another article points out the fact that the proposal of a referendum has united the greek government in an unprecedented way (2). To the Greeks, this is a matter of individual sovereignty. And when viewed in this matter, it is tempting to accept the argument that this referendum would be a healthy democratic endeavor. Yet considering the long term implications and global ramifications, this Greek referendum must be seen as more of a “Shay’s Rebellion” moment, rather than a “Declaration of Independence” moment.
    While it may be democratically inspiring to have the people of Greece express their sovereignty, what positive practical results will that achieve? It is fairly obvious the people will vote to reject the bailout deal, leaving Greece to default on its loans and setting the precedent for other troubled countries to bailout of the EU. In Greece’s zeal to protect individual sovereignty, collective security and progress are being discarded (3). Why I say this must be more of a Shay’s Rebellion moment is that we must see the dangers of reverting back to a system of individualism. Greece will be left in shambles. Italy cannot overcome its own deficit on its own. Now is the time to realize the shortcomings of individual sovereignty and look for ways to embolden and renew the collective power of the EU. The world economy needs this paradigm shift.

    2. “Greek Leaders In Deal to Form New Government” NY Times 11/7/2011

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