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 fjallstrom - Feb 28 114 comments
by Frank Schnittger - Feb 26 125 comments
by talos - Feb 23 170 comments
by DoDo - Feb 22 6 comments
by Migeru - Feb 21 256 comments
by gmoke - Feb 24
by ATinNM - Feb 20 14 comments
by Migeru - Feb 13 88 comments
by fjallstrom - Feb 28114 comments
by Frank Schnittger - Feb 26125 comments
by gmoke - Feb 24
by talos - Feb 23170 comments
by DoDo - Feb 226 comments
by Migeru - Feb 21256 comments
by ATinNM - Feb 2014 comments
by Migeru - Feb 1388 comments
by DoDo - Feb 12261 comments
by Migeru - Feb 3266 comments