6 ms·

It's economics as morality play: http://krugman.blogs.nytimes.com/2010/09/28/economics-is-not-a-morality-play/ http://krugman.blogs.nytimes.com/2010/09/28/econ

• quonn 12y ago
  Exactly. It's about controlling the politics of Greece, because the EU/Germany don't trust them to change and use this to put pressure on Spain and Italy. Tsipras hinted at this fear himself ("returning to the bad old ways"). Still, the price being payed for this by Greece is too high. There has to be a better way. For example: Better contracts, better checks, and active support by investing in parts of Europe that are struggling. Or by creating a Fiscal Union, effectively admitting that permanent transfers are needed. This would be more honest, but German politicians are too afraid that this will be unpopular with voters.