The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
The Greek government has failed utterly in reining in its deficit through tax raises and spending cuts
Unless you have a plausible story about how removing the Greek sovereign deficit would have repaired the foreign balance, it would have been pissing into the wind. The debt load would have increased just the same, and judging by Greece's Mediterranean neighbours it would have increased by means of a speculative real estate bubble.
That is, unless you can make the case that the Greek sovereign (a) had a larger import quota than the Greek private sector or (b) spent the money in ways that materially degraded Greece's ability to obtain hard currency, eliminating the sovereign deficit would not have prevented the crisis. It might have brought it forward, by inducing a business depression due to demand shortfall, or it might have made it bigger by inducing a private sector bubble. But wage suppression always eventually comes back around to bite someone in the ass with a demand-side depression, and the wage suppression was going on outside Greek jurisdiction, so it's a little hard to blame them for that.
Austerity can only be implemented in the shadow of a concentration camp.
by DoDo - Dec 18 1 comment
by ARGeezer - Dec 15 51 comments
by das monde - Dec 14 17 comments
by LEP - Dec 9 26 comments
by gmoke - Dec 17
by Democrats Ramshield - Dec 16 1 comment
by gmoke - Dec 2 7 comments
by ARGeezer - Dec 8 16 comments
by DoDo - Dec 181 comment
by gmoke - Dec 17
by ReGiNuss - Dec 171 comment
by Democrats Ramshield - Dec 161 comment
by ARGeezer - Dec 1551 comments
by das monde - Dec 1417 comments
by LEP - Dec 926 comments
by ARGeezer - Dec 816 comments
by gmoke - Dec 72 comments
by rz - Dec 415 comments
by gmoke - Dec 27 comments
by A swedish kind of death - Dec 233 comments
by rz - Nov 3071 comments
by Migeru - Nov 2959 comments
by ARGeezer - Nov 242 comments
by Cyrille - Nov 247 comments
by ARGeezer - Nov 20
by gmoke - Nov 1916 comments