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.
Friends come and go. Enemies accumulate.
by talos - Apr 29 30 comments
by Luis de Sousa - May 1 1 comment
by gmoke - Apr 29 2 comments
by In Wales - May 3 1 comment
by ManfromMiddletown - Apr 24 4 comments
by afew - Apr 20 52 comments
by ChrisCook - Apr 20 2 comments
by DoDo - Apr 11 4 comments
by In Wales - May 31 comment
by Luis de Sousa - May 11 comment
by gmoke - Apr 292 comments
by talos - Apr 2930 comments
by ManfromMiddletown - Apr 244 comments
by ChrisCook - Apr 202 comments
by afew - Apr 2052 comments
by DoDo - Apr 114 comments
by gmoke - Apr 134 comments