If there is one good thing (and there may be more than one) coming out of this Euroshambles, it is that the masks of hypocrisy are dropping off ruddy faces. (Hypocrisy in Greek is acting).
Yesterday’s failure to reach any agreement has highlighted what is wrong with Europe. It is not the budget deficits, it is not the debt, it is a grand failure to tell, and face, the truth.
The whole Greek fracas is as much about disinformation and denial of the truth as it is a problem of finances. The Frau had a populist ball with the Blame the lazy Greeks game which spread throughout Europe. Then the myth about how the hard working German tax payer was “giving” money to the lazy Greeks who sat in the sun all day doing nothing.
Never once was it mentioned that the Euro had been set up with faults, one of which was the complete failure to design some kind of “Surplus Recycling Mechanism”, which directly led to the weaker economies piling up debts and deficits which translated into the surpluses of the stronger countries.
And this failure to tell the truth continues as witnessed by German antics. Greek debt is completely unsustainable. The “program” everyone is congratulating PM Samaras of Greece for implementing is not only impossible to attain but will have disastrous consequences. Consequences that of themselves will lead to a default and a possible Grexit, and all that that might entail for the Eurozone.
Why? For petty self interest. The Frau wants to win the next election and has decided to keep Greece moribund and on life support till she does. She has consistently spun the yarn about the German taxpayer “giving” money to Greece, while carefully avoiding to mention that so far Germany has made some 80 billion from the Greek crisis through interest payments and the negative interest on German bonds achieved owing to the crisis.
Instead of opting to come clean and help solve the crisis, she prefers to take Europe to the brink of dissolution. No! She says. We will not write down Greek debt, even though we know it is unsustainable, even if this does lead to a break with the IMF and possible worse consequences. Why? Because if she tells the German electors the truth they might possibly not vote for her, because she will have admitted to lying to them through the teeth.
So unless Merkel and her side kick Schauble decide to become serious and responsible, and look further than their own reelection, things do not auger well for Europe, nor even Germany.