Tagged: Greece

I note with some concern the election in Greece of Syriza. Whether it actually proves a disaster will depend on the European Union – and Angela Merkel in particular. I argued when the Euro-crisis first emerged that there were only two broad solutions – either for the countries in trouble to leave the Euro and devalue their currency until they were competitive in the markets again or for the Eurozone to become to become one fiscal unit – a United States of Europe, if you like, with, for example, harmonised tax rates and one collective Euro-debt (not exactly fair on …

There are two schools of thought on how to save the Euro when it comes to countries like Greece (which is the one currently most in the shit), one controversial, one very controversial.  Actually, there are three if you count the current one of keep lending to Greece but I’m not counting that as a solution as it is a temporary measure which to me is like a sticking plaster on a broken leg. The controversial one, is let Greece default on it’s debt, ie going bankrupt in the process, and therefore having to leave the Euro.  This is espoused by …