Time to Admit Defeat: Greece Can No Longer Delay Euro Zone Exit

[sysop]

After Greek voters rejected austerity in last week's election, plunging the country into a political crisis, Europe has been searching for a Plan B for Greece. It's time to admit that the EU/IMF rescue plan has failed. Greece's best hopes now lie in a return to the drachma. <i>By SPIEGEL Staff</i>

http://www.spiegel.de/international/...832968,00.html

[LondonCity]

Sadly Greece it will be painful but it is time

http://worldeconomicreconstructionfo...d-economy.html

[Inglenda2]

We are told that should Greece leave the Euro Zone, the German tax-payer will be burdened by 80 Milliards of losses. The question is, why?
Following the two world wars, for which Germany was given the blame, no financial mercy was shown to that country. It was expected to pay every penny back, plus interest, for the costs which other countries had incurred.
The financial crisis in Greece is completely home made and therefore should be dealt with by the Greeks themselves. This does not mean of course, they should not receive help from other European states, but there is always the possibility for them to pay back their debts in the form of commodities, when currency is not available. Greek olives and wines, for example, are well known for quality.
The writing off of foreign debts and the attempts to buy the friendship of other states, through huge amounts of financial assistance, are the main reasons for Germany's own current fiscal problems. Add to this the costs of German troops being stationed and used, in areas in which they have no justified reason to be, and it is easy to calculate how long it will be until Germany itself will need help.

[PHOEVOS]

You are right:

It's time for Merkel to admit defeat.

Germany can no longer delay abandoning her arbitrary terms.

Dean Plassaras.

[tnt_ynot]

Default day is near and it is overdue. But Angie shouldn't have to admit deafeat. She should embrace a late arriving sense of reality. More importantly she should use this revelation as a guide to other countries who should exit from the euro and if they don't Germany should drop out soon.

Anthony
http://euro-meltdown.blogspot.com

[keksguru]

as I read that the "closed" professions are still closed, 2 years after the law of their liberation was introduced I feel that Greece needs a radical change.

If politicians can't do that, military has to. It cannot be that taxi and truck drivers can force the gouverment... the only power of legislation is on the top and not on the bottom.

If new laws come into force people have to follow, even if some of them do not agree. But same as in other countries, 1% is ruling everyting and the country doesn't develop.

If these ever-gouverning structures are not overthrown nothing will change.

[jpaffett@gmail.com]

@Ingelnda2

Have you never heard of the Marshall Plan? Germany was given huge financial help after WW2 and many countries, including Greece, waived reparations.

[Eleos]

Angela Merkel has been almost alone among leaders in trying to turn Europe round for many months, and she has the experience of how Germany's reforms have helped its current success. The Keynesianism advocated by so many who should know better is merely a synonym for kicking the can down the road. It is ritually accompanied with promises to pick the can up in the years to come, but these are easily forgotten. As long as other countries in Europe can choose at elections whether to stick the left hand or the right hand in the German pocket, and if the Germans object they are called Nazis, the resolution will not come. Unfortunately human nature often requires an example to be made before the lesson sinks in. Greece is the best candidate at the moment. It would seem that many currently underestimate Germany's generous determination to set Europe on a more stable course to prosperity.

[guisun]

Originally Posted by jpaffett@gmail.com

@Ingelnda2

Have you never heard of the Marshall Plan? Germany was given huge financial help after WW2 and many countries, including Greece, waived reparations.

You need to read more in depth about Marshall Plan, such as London Debt agreement. The debt acquired from loans received, were reduced(Germany's debt was reduced to 50%, not waived), and Germany did a LOT more than other Europeans countries to repay the loan. Germany was forced to repay some of their pre war debts acquired from reparations. Germany made every effort to repay, even when it first defaulted in 1930's. The difference is that Germany worked hard to repay, while Greece simply doesn't want to repay. Also different is that Marshall Plan was after a world war that devastated Europe. Greece financial problem is solely internal mismanagement, expenditure, policy, etc... It not like Greece was devastated after a war and needed financial help, Greece overspent during a time of peace/prosperity. Greece got help, and investors already had to take a "haircut" and some took bond swaps, which effectively means that their debt has been reduced. They still don't want to pay the reduced debt. Tsipras went as far as to say that "Europe is bluffing". So money has been pouring over Greece, debt reduced, and this is the type of attitude coming from Greece, no austerity, keep benefits and overspending going financed by Eurozone. And if the "aid" stops, threaten and blackmail Eurozone. Germany is being used as scapegoat by countries that don't want to tighten their own belt, yet they want Germany to pay.

[sbanicki]

The other members of the G8 demanding that Germany loosen up on its request for austerity demonstrates the structural flaws of the euro zone. Germany is alone standing up to Greece's threat to leave the seventeen nation economic gaggle. This is because Greece is not a "state" of Germany and the Germans are not in the mood to give foreign aide to Greece. The other nations of the Eurozone, the United Kingdom and the United States are for helping Greece with German money.

Germany was quick to help create and administer the Eurozone because it was a means to a healthier German economy. The creation of the common currency made it easier to export to other nations and hold down the value of the Deutschmark. It also helped Germany to integrate East Germany into the countries economy. More: http://www.freeourfreemarkets.org/20...tack.html#more