There appears to be an emerging consensus that the euro will survive,
especially now that Mario Draghi has apparently grasped the nettle and
persuaded his colleagues that the ECB is prepared to initiate unlimited
purchases of national government bonds in order to underwrite their
solvency. Of course, as usual with the ECB, there’s a sting in the
tail, the sting being additional “conditionality” (for which one can
read more fiscal austerity) as a quid pro quo. It’s like dealing with Hannibal Lecter.
Greece is the implied fate of anybody who dares to flout the rules. Maybe the country isn’t washed down with a Chianti and some fava beans, but it’s getting pretty close. And whilst nobody wants to appear to be the triggerman who finally kills off Greek membership in the currency union, the country is increasingly being placed in an untenable position, which will almost certainly set it up for future failure.
Greece is the implied fate of anybody who dares to flout the rules. Maybe the country isn’t washed down with a Chianti and some fava beans, but it’s getting pretty close. And whilst nobody wants to appear to be the triggerman who finally kills off Greek membership in the currency union, the country is increasingly being placed in an untenable position, which will almost certainly set it up for future failure.
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