Saturday, November 12, 2011

Reality check from The Economist

The Economist, November 12, 2011 (Charlemagne)

“Much has been written about the subjugation of Greece, the cradle of democracy, under a second German occupation.

And much of it is nonsense. Italy and Greece chose freely to join the euro, and every club has norms of behaviour. In a monetary union, irresponsibility by one member endangers the well-being of others. If Italy and Greece had not been so over-indebted and sclerotic, they would not be in such trouble today. Countries that extend financial help have a right to impose conditions to ensure that their loans are repaid. The alternative to euro-zone diktat is being abandoned to the market. And if a response is needed, it will inevitably be led by Germany and France”.

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