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The situation bears a certain resemblance to a period of history in the USA between the successful bid for independence and the ratification of its constitution
by squozzer 12y ago
The situation bears a certain resemblance to a period of history in the USA between the successful bid for independence and the ratification of its constitution. During that period, the articles of confederation was the document in force and among its many disasters was economic chaos. It was a monetary union (actually not even that as each state printed its own money but efficient currency exchanges were still a century or two in the future) without a political union.
I didn't invent that phrase - Der Speigel mentioned it several years ago in reference to the Greek crisis.
And while I lack the expertise to prescribe the form of a "more perfect union" in Europe, the USA can at least address competitive imbalances bewteen states through a process of income redistribution. Take for example West Virginia. It perennially ranks in the top of USA states that receive more federal money than it generates in federal taxes. Some people complain about this, but most accept it if for no other reason than the knowledge that WV is DC's fallout shelter.
Last time I checked, only two or three German Laender (sorry for not using umlauts) generated net positive federal revenues. Certainly some Germans complain about it, but it's not realistic to expect every political jurisdiction to break even on the tax / revenue ledger.
Both Germans and Greeks (and everyone else in the EU as well) should be willing to bear some of the blame and some of the burden as well.
The Germans are smart enough to know one cannot maintain a competitive advantage forever without bankrupting one's customers. If beggaring the Greeks was part of the plan, then EU rests upon a foundation of bad faith and does not deserve to exist.
The Greeks are smart enough to know that remaining uncompetitive is also not sustainable. If mooching off the Germans was part of the plan, then the EU rests upon a foundations of bad faith, you know the rest.