The Papandreou government [in Greece] is determined to correct the abuses of the past and it enjoys remarkable public support. There have been mass protests and resistance from the old guard of the governing party, but the public seems ready to accept austerity as long as it sees progress in correcting budgetary abuses – and there are plenty of abuses to allow progress.
So makeshift assistance should be enough for Greece, but that leaves Spain, Italy, Portugal and Ireland. Together they constitute too large a portion of euroland to be helped in this way. The survival of Greece would still leave the future of the euro in question. Even if it handles the current crisis, what about the next one? It is clear what is needed: more intrusive monitoring and institutional arrangements for conditional assistance. A well-organised eurobond market would be desirable. The question is whether the political will for these steps can be generated.
Monday, February 22, 2010
Soros: Use the PIIGS Crisis as an Opportunity to Put Additional One Government Controls over the EU
Master global puppeteer, billionaire oligarch George Soros, wants to be able to manipulate the entire EU in one fell swoop. He writes in today's FT: