Questions among -not only- Greeks these days:
Daniel Gros at Project Syndicate raises the point of the ‘sovereign debt’ vs. the ‘sovereignty of the people’.
The broader message from the Greek and French elections is that the attempt to impose a benevolent creditors’ dictatorship is now being met by a debtors’ revolt. Financial markets have reacted as strongly as they have because investors recognize that the “sovereign” in sovereign debt is an electorate that can simply decide not to pay.
This is already the case in Greece, but the fate of the euro will be decided in the larger, systemically important countries like Italy and Spain. Only determined action by their governments, supported by their citizens, will show that they merit unreserved support from the rest of the eurozone. At this point, nothing less can save the common currency.
An interesting discussion debate yesterday evening at BISC. Me and two colleagues tried to define the reasons behind the rise of the Far Right in Europe today and to identify common principles among the European far right movements/parties/groups.
Interesting questions that were raised (not necessarily followed by answers though). I have to further think about the following and more…
….and many others……and last but not least
Is the present European crisis providing the greatest devices for the development of the Far Right’s tactics and strategies?
Our discussion goes on…
During the last months I am contemplating -me and the rest of the Greeks alike – the default of the Greek economy as a pragmatic scenario. And, instantly I become more European, thus even more sceptical about the whole European project, I realise its fragile character and its only certain dimension: its uncertainty.
Martin Wolf in today’s FT
..’The Eurozone is in a form of limbo: it is neither so deeply integrated that break-up is unconceivable, nor so lightly integrated that break-up is tolerable’…
George Papandreou’s risky gamble re referrendum has backfired. Although he was still able to get a vote of confidence yesterday, the political landscape in Greece will soon change under the new government of national unity soon to be formed.
lessons?
Nouriel Roubini in yesterday’s FT argued that Greece should both default and exit the eurozone.
Martin Wolf today in the same paper states that ‘..once the taboo is broken, the possibility of exit must be examined‘.
Greece is not the only passenger on the Eurozone’s boat…and the boat is sinking. I am not sure if the boat lacks a good captain but certainly something is going wrong with its compass…the orientation system does not seem to have worked so far.
And for those ones who wonder whether China can provide the much needed compass I am just providing Yao Yang‘s words in today’s FT:
As seen from Beijing, the euro is a European affair. And the Europeans will have to correct their own mistakes.
Since the very start, Europe has been on the wrong side of the Arab uprisings.
Prospect Magazine raises the following question. Europe: on the wrong side of history?
My points:
Since 1st January 2011 Hungary holds the presidency of the European Union for 6 months. Hungary is supposed to be the model member state and promote the image of the EU as a whole. In December 2010 the government passed a new media legislation that places print, broadcast and online media under the supervision of a new authority powerful to impose fines for violating ‘public interest, public morals or order’ .
Is the freedom of speech likely to become a victim? Let’s hope that the new implementations will be watched closely by Brussels and that we will not talk about traumatized liberal values in an EU country that is supposed to lead the way for six months….
Talks between the Dublin, the European Commission, the European Central Bank and the IMF are continuing regarding a bail-out that will help the Irish government to deal with public finances and stabilise economy. Another sovereign crisis in EU? Another trauma for the Union? Let’s hope that this is all about lessons to be learnt so that the Union gradually emerges stronger than ever…
