Wednesday, May 12, 2010

The eurozone's political dilemmas

by David Prosser

Independent
12 May 2010

Now we have a breathing space in the eurozone debt crisis – notwithstanding market falls yesterday as investors got over their post bail-out euphoria – the European Union faces some serious head-scratching about its lessons. And the biggest lesson of all is one that will be unpalatable to many of the countries in the single currency zone: ever closer economic and political union is inevitable if the euro is really to survive.

Why are the Germans so cross about having to pay to bailout Greece? Because they think the Greeks have been architects of their own demise. To over simplify, hard-working, fiscally responsible Germany resents getting the bill for Greek civil servants who retire at age 50.

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