Greek Tragedy: assisted suicide of Greece, by Germany?20 February, 2012, 15:00. Posted by Zarathustra
Tags: Economy, Euro Crisis, Europe
Here, the view has been consistently clear regarding Euro, and in particular, Greece. Euro is doomed in its current form, and Greece will ultimately default, possibly followed by others.
Wolfgang Münchau has already made the point that the target of 120% debt/GDP ratio by the end of 2020 for Greece is equivalent fo 9 years of strikes in Greece, not to mention, as I have pointed out, that the target 120% debt/GDP ratio isn’t all that fantastic. The latest from Wolfgang Münchau, just as many and I have already pointed out, that ultimately the “solution” will mean loss of part of sovereignty of those troubled by the debt crisis to those who are bailing them out. Now, he added that German’s idea is essentially to provoke Greece by proposing plans (even to delay a general election, which threatens Greek democracy, essentially) that are intolerable to Greece, such that Greece will default itself. He went further saying that this is essentially “assisted suicide”:
The German strategy seems to be to make life so unbearable that the Greeks themselves will want to leave the eurozone. Ms Merkel certainly does not want to be caught with a smoking gun in her hand. It is a strategy of assisted suicide, and one that is extremely dangerous and irresponsible.
Of course, we won’t be sure what will be killed in the assisted suicide attempt, whether it is just Greece, or the whole of Eurozone.