Today is Bastille Day. La fête nationale. I would normally have a special post on it—as I have every July 14th since AWAV was launched—but not this year. Am too distracted by Greece. And Europe. À propos of this, here’s an on-target commentary I came across earlier today, “Tormenting Greece is about sending a message that we are now in a new EU,” by the well-known Irish Times columnist Fintan O’Toole. He starts
What’s the difference between the Mafia and the current European leadership? The Mafia makes you an offer you can’t refuse. The leaders of the European Union offer you a deal you can neither refuse nor accept without destroying yourself.
The European Union as we have known it ended over the weekend. That EU project was all about the gradual convergence of equal nations into an “ever closer union”. That’s finished now.
Read the whole thing. As an observer in one of the PIGS, O’Toole knows of what he speaks. And in addition to being a sharp analyst, he has a fine sense of le second degré, as one may glean in this tweet
#Greece should have declared itself a bank. Would have been bailed out no questions asked.
Simon Tilford, the deputy director of the Centre for European Reform in London—the best think tank on the EU—has an op-ed in today’s NYT, “The Eurozone’s fault lines,” in which he begins with this
The euro was supposed to boost European economic growth and living standards, strengthen public finances and hence the sustainability of welfare states. Politically, it was supposed to bring the European Union’s member states together, and prevent a newly united Germany from becoming too dominant. But the opposite has happened.
The hoped-for convergence in living standards between richer and poorer members of the eurozone has failed to materialize. Far from the single currency nurturing a European polity, relations between northern and southern countries have never been more fraught. And the crisis has put the burden on a German leadership that is poorly equipped to exercise it.
On relations between the EU north and south, see the piece in Foreign Policy on the goddamned f*cking Finns, “Tiny Finland could complicate new Greek bailout deal.” Anyone for a #finexit? (just kidding) Europe is doomed if populist politicians in little EU countries gain the ascendancy in the European Council and Eurogroup.
CER analysts Christian Odendahl and John Springford, writing on the CER website, assert that “The Greek bailout deal resolves nothing,” that “[e]ven if the new bailout makes it through the Greek parliament in coming weeks, the programme’s economic incoherence will make it fall apart.” And in the same vein, Barry Eichengreen, writing in Social Europe, argues that to save Greece is to save Europe.
While one is at it, see as well the comment by Social Europe editor-in-chief Henning Meyer, “What are the consequences of the Greek deal?” Also the piece by WaPo Wonkblog reporters Roberto A. Ferdman and Matt O’Brien, “How Greece became the worst economy in Europe.”