Blog 2023 Malcolm Blair-Robinson

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The word spectacle is carefully chosen, since this is what the current drama of which Greece is the symptom, not the cause, has become. It no longer bears any relationship to coherent democratic leadership or process of governance in a workable political and currency union. The cancellation at a moment’s notice of a summit of all EU leaders is extraordinary.

There is a problem with Greece, but it is not that difficult to solve. Indeed this blog working alone would be able to negotiate a workable solution. What is proving impossible is to find an acceptable solution, because the institutions normally established to process decision making at national and international levels are not there, or there in such abundance nobody can detect who is in charge. And to make matters worse the structure of the currency itself is unsustainable as it lacks a treasury and a finance minister answering to an elected government. A committee of finance ministers at loggerheads, elected by only one member state in each case, on conflicting mandates and to differing electoral timetables will work only in the good times and becomes dysfunctional under pressure.

So all we know at this moment is that Greece may or may not go bust tomorrow, the euro looks more like an impediment to growth than an engine of it, and the reputation of the EU as a coherent political union is severely damaged. Beneath that a big gap is developing between the north and the south of Europe, between the politicians and their electors everywhere and between those in the eurozone who want to stand firm to high principle even if it brings the whole thing down, led by the Germans, and by those who feel pragmatic reality demands compromise, led by France and Italy.

At the heart of of this crisis now engulfing the whole EU are three violated principles. You cannot have a democratic political union without an elected forum from which all authority flows. You cannot have a currency which cannot be printed. You cannot have capitalism which does not permit debtors to go bust. The first is violated because the whole EU is wrongly configured. The last two are rescinded because Germany says No.