Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
"Would this work for Greece? No, unfortunately no, because Greece is not able to pay in the future the huge debt it has, so the only option is accept it, either by accepting a slightly higher inflation in the eurozone printing the money that Greece needs or by a default...or.. by having a common european tax to pay for unemployment benefits and mobility of workers in the whole euro area. In other words, to have an european economic union."

I totally disagree with this point. Even at levels of debt piled by the 2004-09 government (they double it in absolute terms in just 5 1/2 years), Greece would still be able to serve its debt if she had to pay for them a reasonable interest rate, i.e. around 3-3.5% i.e. as high as it used to pay or as high as "risk-free" Germany pays.

"Eurozone leaders have turned a 50bn Greek solvency problem into a 1,000bn existential crisis for the European Union." David Miliband

by Kostis Papadimitriou on Sun May 22nd, 2011 at 04:26:30 AM EST

Others have rated this comment as follows:

DoDo 4

Display:

Top Diaries

Italian government collapse

by IdiotSavant - Jan 15
20 comments

Dutch Government Collapse

by Oui - Jan 16
6 comments

A Rush To Judgement Day

by Oui - Jan 17
2 comments

A Long War?

by Frank Schnittger - Jan 8
77 comments

Israel and A Presidential Election

by Oui - Jan 14
32 comments

Recent Diaries

Occasional Series