Thursday, July 21, 2011

The eurozone summit is make or break for Greece

by Matina Stevis

Guardian

July 21, 2011

Henry Kissinger is alleged to have once wondered: "Who speaks for Europe?" The answer today is either "everyone, at the same time, loudly and incomprehensively" or, simply, "no one".

That the European integration project was always one riddled with collective-action problems, as leaders from different parts of the continent came together to represent their domestic interests, is generally accepted. But one would hope that, at the height of a crisis that has been tormenting the eurozone for 15 months, its leaders would get it together. Don't be fooled by bold statements: they haven't.

German chancellor Angela Merkel and French president Nicolas Sarkozy met in Berlin on Wednesday after what was described as an "inconclusive phone call" (read: "it ended with someone hanging up on someone") on Tuesday. They let it be known that there had been an agreement on how to deal with the Greek debt crisis, which is to be negotiated and agreed on today in Brussels. They both face challenges at home, with the "incredible shrinking" Sarkozy 10 months away from a general election and the sorely uninspiring Merkel appealing to a mere 36% of her electorate.

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