Monday 26 April 2010

Those Troublesome Greeks

So now the Greeks have asked for the financial aid necessary to fend off a default. It was always going to come to this, the question was, and unfortunately remains-just how it will be implemented.

It would appear that despite the barriers and threats that German party politics keeps throwing up that Germany will have to bear around 25% of the costs within the EU. That alone would be reason enough to cause disquiet. Now add insult to injury. The Greek Welfare system is more generous by far than the German system which introduced major cuts in social spending with the introduction of Hartz IV.

The Germans don't understand why they, a wealthier nation, as a result of reunification and then the Euro/Maastricht, had to cut welfare spending and the Greeks, who have been less than open about the the true state of their finances,just keep living the good life.

Fair point. The question is will the EU "visionaries" who sought a United States of Europe be able to stay the course, or will the technocrats of the individual states win out?

I think we are at a difficult, and dangerous point. All the moves to expand the EU, and thereby the Euro to the East will be scrutinized much more closely. Hindsight says Greece in the EU yes, in the Euro no. What does that mean for further European integration? And what does it mean for further NATO expansion?

The Cold War is over. Russia is resurgent. Turkey is no longer the Ottoman Empire, but is also no longer the Sick Man of Europe. Add Iran to the mix and it quickly becomes obvious that this is not a game for children.

Can someone tell that to the squabbling Belgians, the striking Greeks, and the posturing French and English?

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