Main focus of Friday, May 11, 2012

Hope for new government in Greece

Pasok leader Venizelos is still trying to find coalition partners. (© AP/dapd)

The Democratic Left party in Greece has signalled its willingness to enter a coalition with Pasok and Nea Dimokratia during preliminary discussions. The parties all agree that the country should remain in the Eurozone. While some commentators welcome the consensus, others see a Greek exit as the better solution.

Euro exit tough for Europe

The impact of Greece exiting the Eurozone would be virtually immeasurable and could ultimately affect taxpayers, warns the liberal daily NRC Handelsblad: "For Greece, where half of the electorate voted ruthlessly against Europe, exiting the Eurozone entails the risk of impoverishment the likes of which the country hasn't witnessed in four decades. But the reckless behaviour of Athens' politicians, always polarising and isolating their country, also affects Europe. … A euro exit would cost the European Central Bank roughly 30 billion in write-offs; the total amount is incalculable. Also the fact that the major banks would be spared since they hardly have any Greek bonds on their balance sheets doesn't mean much. Via the EFSF the bill can still be passed on to the nation states and ultimately to European taxpayers. Then there's the risk of a domino effect, especially for Spain. … This is all cause for major concern." (11/05/2012)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece, » Europe

Renegotiate austerity

Greece must remain in the Eurozone and reach a new agreement with its creditors, writes economist Giannis Varoufakis on web portal Protagon: "Whether we like it or not, Greece's fate is inextricably entwined with that of the rest of the Eurozone. If we act like we can get along on our own, without Europe's help, we will create a situation that destroys all hope that our voice against the austerity measures will lead to something good. This is the situation: on the one hand it is impossible to comply with the terms of the austerity package. … On the other it's just as impossible for us to finance the development and reform policy needed to get out of the crisis. So what can we do? There's just one solution and it is laden with difficulties: we must renegotiate the terms of the austerity agreement between Greece and its creditors - as a member of the Eurozone." (10/05/2012)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Elections, » Greece, » Europe
All available articles from » Giannis Varoufakis
Who's saying what » Ways out of the debt crisis

The euro is a destructive utopia

The problems of the Monetary Union prove that the euro is a utopia that could end up destroying Europe, the daily newspaper Público argues: "For too long we in Europe have believed that problems could be solved by simply sweeping them under the carpet like a lazy housewife. … This week has shown that a collapse of the Monetary Union can't be excluded. … It's not possible to have a common currency without a common government. The current tensions are a direct consequence of this institutional failure. This realisation should prompt the decision-makers to question the viability of the euro. So far all they have done is tried to patch up the problems with a house that is falling apart and proposed unrealistic federalist solutions. The fiscal compact guarantees nothing; the growth programme is pure rhetoric. Europe has been destroyed several times by utopias. The euro appears to be the most recent of these." (11/05/2012)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economic Policy, » Portugal
All available articles from » José Manuel Fernandes
Who's saying what » Ways out of the debt crisis

Exit soon inevitable

A Greek exit from the Eurozone entails opportunities and risks, both for Greece and for the rest of the euro countries, the liberal weekly magazine The Economist writes: "An exit, and the ensuing default, would lighten its debt, re-establish competitiveness and challenge its politicians to grasp their own destiny. Yet leaving the euro would also create chaos and destroy savings and, as often in the past, its advantages might rapidly inflate away. The rest of the euro zone is also better off with Greece 'in', if only because of the risk of contagion (and the inadequate preparations for that). But again, not at any price. If Greece rejects the second bail-out or falls drastically behind in its programme, its exit could become inevitable." (11/05/2012)

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More from the press review on the subject » EU Policy, » Greece
Who's saying what » Ways out of the debt crisis

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