Der Schauble-Schrecken schleicht durch die Eurozone… (Schauble-horror creeps through Eurozone)
I’m increasingly lost about the whole Euro/Grexit/European Union project.
- How could something which is basically about something as basic as rolling over debts get so out of hand?
- Why do the Greek want to keep the Euro so badly?
- And why are politicians like Schauble and Guy Verhofstadt (who according to this blogpost has quite some ties with banks like Eurobank in Switzerland, owned by Spiros Latsis, the richest man in Greece) so hysterical about Greece?
The first two questions leave me at odds. The third seems to be answerable. It is the oldest trick in the book. Create a common enemy to be able to gain power and lead the Eurozone to your destination. And according to Varoufakis, it might indeed be something which could be called the ‘Schauble-Schrecken’: “Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.”. Though Verhofstadt, who did not even understood that Greece reformed more than any other country, might just serve the needs of the richest man in Greece.
And I do of course understand that countries like Spain and Italy love the tripling of VAT rates in Greek tourism, to undo whatever kind of price decreases haven been enabled by cutting wages (source of the graph: Statistisches Bundesamt).
But even Varoufakis wants to keep the Euro. Which is weird, as the Euro has been a big fat failure:
Low unemployment -fail
Financial stability – fail
Economic stability – fail
Prosperity – fail
Income inequality – fail
Convergence – fail
Domestic harmony in Eurozone countries – fail
Low and stable inflation (includes house prices) – fail
Acceptabel level of political bickering and reasonable governance – fail
The Greek will be much better of without the Euro. And not just the Greek.