Wednesday, November 2, 2011

This Could Be the End of the Euro

by Edward Harrison

New York Times

November 1, 2011

Papandreou's decision to call a referendum has put the Greek government at risk. Indeed, the government may collapse before any referendum is called.

But the decision was necessary because austerity is deeply unpopular in Greece and has already caused tremendous social unrest. The new deal would see a cut of 100,000 government positions and the permanent presence of the European Union, the International Monetary Fund and the European Central Bank to ensure compliance. Given the widespread perception among Europeans that the E.U. system is undemocratic, there was no alternative but to put these measures to a vote to ensure their political viability in an already volatile social environment.

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