Tuesday, May 15, 2012

Rehash of the Greek tragedy

Greek President Proposes Government of Non-Politicians

Greece will hold new elections after President Karolos Papoulias failed to broker a governing coalition following an inconclusive May 6 vote, raising concern it may exit the euro. The currency and euro-area stocks fell.
“The country is once again headed to elections in a few days under adverse conditions,” Evangelos Venizelos, the leader of the socialist Pasok party said. “The Greek people told us they didn’t want elections but a coalition government, that they want Greece in the euro.”
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Comment: It was a grave error to let Greece get into the euro even more so as it was well known that the official statistics were heavily mainpulated. The second major error happened in 2010 when contra to the EU treaty Greece was promised a bailout although the treaty clearly states that each country is responsible for its own debt. The third major blunder was the horrible crisis management that has been following ever since, both in Greece and in the EU.
Backgrounder: What's behind the euro crisis?

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