Greece is the confluence of multiple errors and incompetence.
It ensnares a historically habitual defaulter (Greece), corrupt EU cronyism involving risk-free private bank loans, transference of debt to taxpayers, successive flawed IMF assessments, and need for debt relief pragmatism.
Implicit too is the original flawed conception of the euro — a currency and monetary union without fiscal union. This was followed by the open invitation to weak fiscal states like Greece to join this new currency. The ensuing spending binge by successive Greek governments against low euro interest rates started the rot.
This was exacerbated by systemic inept tax collection and profligate government spending, including excessive employee benefits and perquisites.
Within the EU, over zealous and unrealistic austerity demands were imposed — mainly at Germany’s urging. Many see this as a veiled vindictive act.
All the creditors, acting without consequence, have been made whole. Profits generated by the EU are transferred to the bankers regardless of their bad decision-making.
The desperation of the Greek citizens and their revolt is a predictable consequence. The ideologically driven Greek government does not auger well for this battered county’s future or the EU.
Maybe we are witnessing a tipping point and early stages of the unraveling and possible subdivision of the European Union. There is plenty of blame to be assigned to all participants — bar none.
David J. Waldron