Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The Drachma, being a convertible currency, will be as hard as the Euro.  It just won't be worth as much, and that value will take a while to be established at a stable level.

The recession makes most tourists much more price sensitive which gives Greece with a radically devalued currency a huge advantage in capturing market share.

The housing boom would be caused by foreigners buying up holiday homes at (for them) knock down prices - and also by wealthy Greeks repatriating their money to buy up assets (of all kinds) at very cheap prices for their (Euro) assets.

One of the negative consequences of devaluation - at least in the short term - is to exacerbate the relative inequality between foreigners and Greeks, and between wealthy Greeks (with foreign assets) and local Greeks. However the repatriated wealth should increase the tax base available to a (progressive) Greek Government.

My suggestion is that the Euro Crisis also spells the end of of the dominance of EPP politics/Austrian economics.

I don't read much German media, but I would hope that Merkel is being excoriated even in Germany for her racist comments. Certainly there seems to be a shift away from the CDU for all sorts of reasons, one of which is the mishandling of Germany's relations with the rest of the EU...

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue May 31st, 2011 at 03:10:41 AM EST
[ Parent ]

Others have rated this comment as follows: