Project Fear claims our economic prosperity depends on the EU. Try telling that to the Greeks. Six years since the sovereign debt crisis began, Greece is still facing economic catastrophe – and the blame lies in Brussels.
Greece’s problems began with the euro. The single currency misrepresented the risk of lending to Greece. It allowed Greece’s consumers and its government to buy what they couldn’t afford on credit they should never have been lent – money which came from banks in Germany and elsewhere in the EU. Greek borrowers should have known better, but so should European lenders and policymakers.
In response to the inevitable crash, though, only Greece was expected to pay the price. Instead of making the lenders who made bad investments in Greece bear the full cost of their bad decisions, the EU Troika has forced Greece into a vicious circle of economic contraction and debt expansion that creates a constant crisis.
Yet Greece has been abandoned not just for its creditors’ sake, but for the euro’s. Restoring the drachma could have freed Greece from debt deflation. But to keep up the absurd pretence that the single currency is a success, the Greeks have been reduced to debt servitude instead.
This blog post was originally published on TalkCarswell.com, and has been reproduced here with the author’s permission.