9 thoughts on “A bailout that hurts the Germans but doesn’t help the Greeks”

  1. Posted 05/05/2010 at 11:25 | Permalink

    That is a nice article. Competitiveness is the major issue. That is also true for Portugal, Spain and Italy!
    Many economists and politicians only think about whether Greece should or could leave the euro. Instead, we should also raise the question whether it might be favorable for Germany to leave. The probability of that event seems to be small at the moment. However, further bail outs or the loss of the money poured into Greece might change the situation.
    Furthermore, it is not clear yet whether the bail out loans conform with the German constitution. Some famous euro opponents already anounced legal action. So, there might be an unpleasant surprise ahead.

  2. Posted 05/05/2010 at 11:32 | Permalink

    Holger makes a good point about the German constitution. The court may not have enough time to stop the first installment but there is a good chance they will at least delay later payments.

  3. Posted 05/05/2010 at 11:39 | Permalink

    […] Ein sehr guter Beitrag der es auf den Punkt bringt. IEA Blog Blog Archive A bailout that hurts the Germans but doesn’t help the Greeks […]

  4. Posted 05/05/2010 at 12:31 | Permalink

    Mann kann nur sagen: schaumermol.

  5. Posted 05/05/2010 at 12:41 | Permalink

    What we are witnessing is not a Greek crisis, it is a eurozone crisis. The UK, not in the eurozone, is sometimes referred to by Brussels as a ‘pre-in’. But it seems more realistic to regard several eurozone countries as ‘pre-outs’, including Greece, Portugal, Spain, Italy, Ireland … and perhaps even Germany.

    This kind of crisis was predicted before the euro was adopted. The political tensions inside the eurozone will not disappear until there is some resolution of the crisis.

    It is hardly surprising that the Liberal Democrats are now trying (falsely) to pretend that they have never been in favour of the UK joining the euro. The phrase ‘rats leaving a sinking ship’ comes to mind.

  6. Posted 05/05/2010 at 20:35 | Permalink

    […] IEA Blog – A bailout that hurts the Germans but doesn’t help the Greeks (tags: greece germany sovereigndebt euro) […]

  7. Posted 06/05/2010 at 11:19 | Permalink

    Just another topic on which the average Joe and the classe politique are worlds apart. Virtually all representatives of the latter now back the Greek bailout, with differences only in timing and emphasis. This includes, of course, the LINOs (Liberals In Name Only). Now would be the time for a ‘Tea Party Movement’ which would be anti-bailout, including of banks, anti-’stimulus package’, against unconditional opened-ended welfare, anti-political correctness, and against limiting wealth in the name of ‘climate change’.

  8. Posted 06/05/2010 at 12:02 | Permalink

    […] Arquivado em: Economia,Nanny State Watch,Política,União Europeia — Miguel @ 13:02 “A bailout that hurts the Germans but doesn’t help the Greeks” de Oliver Marc Hartwich (IEA blog) Given the Greeks’ poor productivity, Greek wages (and prices) […]

  9. Posted 07/05/2010 at 09:51 | Permalink

    Greece except for tourism has a strong pressence in shipping bussiness and is providing several services, mostly to the balkan region and also middle east (banks,telecommunications, construction). IMF did not reduce the salaries in private sector at this stage, acknowledging this fact.

    Budget deficit was generated by the expenditure of public sector which has to decrease, and tax evasion along with corruption that shall be targeted as well.

    Sadly european leaders are not united in the first crisis that strikes eurozone, that helps speculators to spread it from Greece to Portugal (spreads doubled there in 2 weeks) and suspend it.This is not a union just a puzzle of countries.

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