Monday, February 22, 2010

The Greek money problem

EUObserver has a nice blog post by Roberto Foa that punches the myths about the threat of a Greek collapse:
- countries can leave and return to a monetary union without major problems: in Africa's CFA franc zone that has repeatedly happened.
- countries can go broke without endangering their currency. No one supposes that the US guarantees all the countries that use the dollar.
- several solutions are possible. What makes the Greek situation seem difficult is that some europhiles are blocking an IMF bailout while there is not (yet) sufficient support for an European bailout.

The only real problem is for the eurocrats. Greece shows the limits of their "ever closer union". I think it will be good to give up that myth and to start instead working on what is really needed in Europe. We have seen enough dysfunctional rules whose only reason of existence seems to be to carry more power to Brussels.

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