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The thing is, the Greek system mostly worked, corruption and waste and all, before it entered the Euro area. Cheap credit and no possibility of currency devalua
by ahartmetz 9y ago
The thing is, the Greek system mostly worked, corruption and waste and all, before it entered the Euro area. Cheap credit and no possibility of currency devaluation broke it.
The currency union was just very badly thought out. A currency union without a fiscal union is probably a bad idea. That was recognized somewhat by the stability criteria for new members that were then swiftly ignored for various reasons.
- lispm 9y ago> the Greek system mostly worked That's highly debatable and in a changing political landscape there was no future for that. A tiny country next to the EU and a large Eurozone? Greece needed reforms and some (not all) of them were long delayed. That's also the point of the EU and the Eurozone. It provides the framework for the reforms. The largest win for Greece is a stable democracy, after a long phase of political instability and military governments.
- Deadolus 9y agoNot saying that it would have worked - but there is actually a tiny, tiny country surrounded by the Eurozone - Switzerland. And while surely not everything is perfect there, I think they are doing quite well.