3 thoughts on “The problems of Greece – Deeper than you think”

  1. Posted 13/07/2015 at 14:20 | Permalink

    Nobody need care what ‘most economists’ think about the ‘Greek crisis’, as the eurozone (like the European Union itself) is a political project. My own view is that the Greek prime minister has assessed the situation correctly. He believes (as I do) that so much political capital has been invested in the eurozone that the German leaders, in particular, simply will not, in the final analysis, be willing to contemplate any member of the eurozone being excluded — not even Greece. Of course Greece should not have been admitted in the first place, but (in my view) nor should the other countries that failed to comply with all the Maastricht criteria. (In other words, only Luxembourg should have been admitted — resulting in a break-up of their currency union with Belgium and an increase of one in the number of currencies in European countries!) It is easy to see that France never wanted to stick by the rules; but it is now becoming apparent that the same is true of Germany. Any by the way, although commentators complain that the Greeks are now being forced to accept conditions that they voted against only a week ago we should not forget that the new deal promises to provide some 86 billion euros whereas the former deal would only have provided about 7 billion euros. Game, set and match to Tsipras!

  2. Posted 16/07/2015 at 17:28 | Permalink

    I’ve got a few questions for you. What do Greeks, Serbs, Bulgarians, Romanians, Ukrainians, Belorussians, and Russians have in common? The Orthodox church.
    Is either of them prosperous?

    Of course, religion is not much of an issue there now but it points to their history.


    “Far more dangerous are institutionalized corruption, a lack of transparency and creeping neglect of existing laws. All the German euros in the world will not save Greece if Greeks continue to dodge taxes, featherbed government and see corruption as a business model.
    Even obeying so-called minor laws counts. It is no coincidence that a country where drivers routinely flout traffic laws and throw trash out the window is also a country that cooks its books and lies to its creditors. Everything from littering to speeding seems negotiable in Athens in a way not true of Munich, Zurich or London.”
    Victor Davis Hanson – – Wednesday, July 8, 2015

    Were that by chance that Greeks elected a commie to be their prime minister or Russians elected a former KGB man to be their president? Not at all.

    Good luck in hoping for a cardinal change soon and betting your money on that.

  3. Posted 19/07/2015 at 14:25 | Permalink

    Of course Professor Myddleton is right in his assessment of the ‘Greek problem’. To which I add that a currency union dictates interest rates and exchange rates, one size to fit all which it clearly cannot. Thus both Greece and Germany have done badly: Greece has been driven to near penury and Germany would have been more prosperous if the DM had continued. In any currency union the periphery has to be subsidised by the centre with massive transfers. Here the transfers have fallen woefully short. Indeed voters asked to fund on the required scale would almost certainly say “no”.

    Above all, the EU and the euro zone are political: politics trumps economics every time – until inevitably it falls apart. That is when people will really get hurt.

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