I must say I really like Greece. I thank the Odyssey and the Iliad, philosophers, democracy, the Olympic Games, Sparta and Greek yogurt. But I did not like when they have taken our cup (Euro 2004) .
This days Greece is living what could take the contours of an almost “tragedy.” The possibility of default and the exit of euro are almost a reality. However, most of the Greek people want to stay in the euro, which is not surprising, because the euro, for good and for evil, brought price stability, controlled inflation and economic growth. But to remain in the single currency means that the Greek people will have to bow to the will of Europe and of course that is what Greeks do not want. Not the Greeks and not many people. For many it is completely unacceptable that Greece becomes to behave like “adult” and start living exclusively from their means – something that it does not doing for decades. So the solution is to bravely leave the euro, challenging the dragons of European lenders.
Blaming the economic and monetary union is a constant defended by radicals. However, the problem of Europe is not to have a common currency, but to be subjected to excessive government regulations and high taxation rates; the lack of economic integration; the glaring differences in the support to agricultural sectors and industries of the Member States; the lack of state protectionism of key sectors and even the privatization of these sectors. The crisis of the euro, is mainly due to uncontrolled spending by governments that led to the debt.
Many argue that leaving the euro is the solution to to stop global warming and a cure for the flu. This ingenious approach advocates that the exit of the euro is even a patriotic attitude and that will allow states to return control of their monetary policies.
I estimate that the aim is to decrease the value of the currency to make exports cheaper and thus boost exports, but it lacks me to know how far this increase in exports can raise and above all, I did not realize yet which solutions they present to the fact that these countries in difficulty are strongly deficit in the balance of payments, which means they will have to pay more for what they import, such as raw materials and fuels. However, devaluing the currency creates, at best, only a temporary benefit for exporters (and only for them). All the remaining sector of the economy loses with a currency devaluation. The defenders of this solution, do not clarify about the costs of labor of the southern European countries, and never compare these costs to those of China and India, for example. On the other hand, there are those who argue that we should inflate the currency to destroy the purchasing power and reduce exports, but then we will have the reverse of the previous situation, ie will increase the prices of what we export and thus reduce what we have received with consequent wave of redundancies.
The question is who will pay this cost and who will ensure the parity of these new coins or their credibility. Did they expect to be the bad guys in Europe? It will be the same as in a football game between kids that some of them do not know how to play and solve exit the game, and say they want to play alone, but with the ball of others.
The defence of the solution of exiting the single currency only serves to push the issue with the belly, as the monetary manipulation serves perfectly the purpose of delaying the necessary economic reforms. Monetary manipulation is apparently more painless than austerity, and promises the miracle of putting a constantly economic growing without ever having to make corrections.
The anti-euro, turn their weapons for the despicable and arrogant attack on Germany whose hand labor is more productive and more efficient in terms of costs. I was even called a germanophile and I have heard that the German defenders committed a blunder of lese homeland. But my attackers persist in the banal and common mistake. Germany and the German people just advocate a strong currency because its population and its responsible government are for decades disposed to submit to the discipline that such a policy requires and then reap the fruits of these sacrifices.
The evil Germany has stolen oil or even former colonies to serve as markets. Instead, Germany puts its weight only in the production and economic rationality. In fact, Germany’s detractors should note that it is Germany who more lose with this. The euro exists only because Germany protects the euro through the use of their taxes to bail out – through loans – the indebted countries of southern Europe. But obviously I have to admit that this rescue is a poisoned remedy because that aid has as a result an even greater debt of these countries.
The anti-Germany argue then that it should be Germany to pay for the mistakes of others and that it should forgive debts and continue to lend money to countries that have erred. In this demonic crisis, I never hear anyone protesting against his government for spending too much. On the contrary, people demand more protectionism, end of reforms and even the end of the privatization processes, even if it can only be achieved through more spending and obviously more debt.
I do not understand these people and the Germans, the Dutch, the Austrians, the Norse also do not understand the Southern Europe. But this lack of understanding is interpreted by the South as treason, racism, xenophobia and imperialism.
If I were German or a citizen of a state that fulfills and even is not corrupt, I would ask my government to immediately leave the euro and let those who do not comply, delivered to their much desired economic sovereignty, but of course I would close the taps of funding to splurges and corrupt governments.