A Greek Tragedy Foretold
Fabian Zuleeg, Janis A. Emmanouilidis
This Commentary by Fabian Zuleeg and Janis A. Emmanouilidis argues that the Eurozone partners are in a bind. Without further support, Athens will have to default, with all the negative economic, financial and political consequences for Greece and its European partners. But if Europe's leaders are serious about saving the Eurozone they will no longer be able to avoid the crucial question: Beyond providing finance to prop up Greeces public debt, what is the long-term plan? Without addressing all underlying causes of the euro crisis - not only the lack of public finance discipline and structural reform but also the lacking competitiveness of Europe's periphery and the diverging economic performance within the Eurozone - this crisis will reoccur up until electorates in weaker or in the stronger Member States say 'enough is enough', with all the negative consequences this would entail.
PDF download available here.
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