The State bankruptcy in Greece Greece is broke. Also after the first EU rescue package the Greek budgetary situation has come up not permanently consolidate. After now the treasuries of the southern EU Member States were finally classified as junk, it is clear what any attentive observer suspected for months: in the recognition of de facto bankruptcy no way passes for Greece more, even if the EU makes loose again 120 billion euros. Who could probably even twice as much knows? The case of Greece now, forcing the EU itself, to Ireland, to deal with the case of an insolvent Member again and more fundamentally. And it is the logic of the policy, which makes it clear why this is happening now.
The State bankruptcy in Greece places we us for a moment before, Greece would be a company. (And let’s say also the limiting factor: a small company, because when the big it, as we know, different looks.) We continue to assume this company signed a At companies, which had written mutual, maximum trading advantages on the flags themselves internally, up to joint appearances with relevant donors. What would be probably the first thing this “common market” well advised by clever lawyers would settle in his partnership agreement? Right, the insolvency of one of the members and the consequences for the Federation. Discussions of EU Finance Ministers on Greece clearly make the case: this is different in the euro zone. For even more analysis, hear from Kevin Johnson. Is the financial crisis as a natural disaster by definition why that? You want to ask.
It made no sense, in a such a large project such as the European economic and Monetary Union (EMU) to be worst, to regulate the insolvency of a Member; thus to determine what should happen in this case? The answer is simple: you did this, the EMU would never have been possible, had it not been the euro simply. No European Parliament had ratified a treaty, who from the outset had committed to payments in hundreds of billions to the insolvent partner. However, taken on a clause, which says that’s not going to happen. We remember: to give the appearance of legality the 750 billion of the first emergency parachute, had the financial crisis to a disaster to be defined no poor performance, in itself. About Greece beyond the cases of Greece, Ireland and Portugal may soon have overridden this clause first as a naive unmasked and now in fact. Money is – that should keep flowing as sure – and at this point, the logic of the policy is clear how it works,: it comes in the political game not about what to do, not even what you are doing. It is about what you can do without having the people denied the followers of the ruling (that being the sovereign democracy, makes quite paradoxical this sentence). The only amazing thing is – every time again – how long it goes well. But this is an issue the Greece, the cradle of European philosophy and statesmanship, is connected in other ways. Andreas Kellner..