Thursday, 9 July 2015

Europe's Turkey

Let’s see if we can put this in a nutshell. In the late 90s, Greece, with a little help from their German friends, fudged their books to get the drachma operating within the rules and regulations of the ERM and threw their lot in to join the Euro. They continued fudging their books right up to a few years back. The Great Recession struck and someone asked for a little something from the reserves, only to be told…oops….ain’t none. A big stack of debts, yes. Cash reserves? Not so much. Not to worry. They kept on spending the welfare, dodging their taxes and dreaming the European dream.
And Greece and the EU fudged the books again, breaking all sorts of rules and regulations, splashing the cash to try and keep Greece’s head above water. Alas, the floatation aid stopped Greece from ever reaching dry land. And here we are today. The Greeks have debts they can never pay off. The Germans have credit notes they can’t forgive. Forgiveness is for wars. The truth is, the Greeks should never have been in the Eurozone. Trying to keep them in it was simply throwing good money after bad. It turned out that a half-baked single currency shared by a multitude of independent and competing economies wasn’t such a good idea. Who knew? I guess all the other countries who have ever tried to share a currency and seen it fail.
So here we are. Pick an option. It’s lose, lose all round. There can be no winners. The only question is, does Europe seek an idealogical solution based on faux European unity and give the Greek’s their financial haircut? Or do they seek a common sense solution and let Greece go? Time will tell. Either option is expensive. Either way, pro-Euro supporters like myself are watching, weeping, and losing faith. It’s become an uncontrollable monster. The Eurozone area needs to federalise. The European Union needs complete reform, or risk losing supporters like myself to the sceptic side.
Are there any possible winners at all? Well, possibly. If Greece becomes Europe’s turkey and is sent to the slaughter house, could Turkey become Europe’s next hot entry? Whether this would be a good thing for the Turks or a bad thing is debatable. But they have previously expressed a desire to join in the fun. The only thing stopping them? The Greeks, with their Cypriotic grudge*. Who might not be around to say ‘oxi’ for that much longer…
DSCF6993
  • Of course, the Greek part of Cyprus will remain to be convinced…