By George Friedman – The Greek situation — having perhaps outlived the term “crisis,” now that it has taken so long to unfold — appears to have finally reached its terminal point.
This is, of course, an illusion: It has been at its terminal point for a long time.
The problem is simple.
The core institutions of the European Union have functioned not as adjudicators but as collection agents, and the Greeks have learned how ruthless those agents can be when aided by collaborative governments like Cyprus.
The rest of the Europeans have also realized as much, which is why Euroskeptic parties are on the rise across the union. Germany, the country most threatened by growing anti-EU sentiment, wants to make clear that debtors face a high price for defiance.
And if resistance is confined to Greece, the Germans will have succeeded. But if, as I think it will, resistance spreads to other countries, the revolt of the debtor states against the union will cause major problems for Germany, threatening the economic powerhouse’s relationship with the rest of Europe. more> http://tinyurl.com/o87erop
- Beware of a Humiliated Greece, Leonid Bershidsky, Bloomberg
- Here’s What Greek Austerity Would Look Like in America, Victor Luckerson, TIME
- Meet the One Greek Business Profiting From the Run on Banks, Simon Shuster, TIME
- Greece, Missing I.M.F. Payment, Is Called Effectively in Default, Jim Yardley, James Kanter and Jack Ewing, nytimes.com
- Many Greeks Still Want a Deal, Jens Hainmueller and Yotam Margalit, nytimes.com
- IMF warns of huge financial hole as Greek vote looms, Renee Maltezou and David Chance, reuters.com