Sunday, 9 May 2010

Bailing out Greece

So here we go again, talk of bailing out Greece etc. The UK's opposed, except

Euro-zone leaders are attempting to get round objections from countries such as Britain by invoking Article 122 of the Lisbon Treaty, intended to enable a collective response to natural disasters. This does not need unanimous agreement.

So like it or not, make the right decisions, stay out of the Euro, and you still have to pay up. Because that will stop countries making bad decisions in the future. No, it'll mean that we don't learn from our mistakes - that the Eurozone was never one of these "Optimal Currency Zones" that economists have talked about.

But that isn't what annoys me. The bit that says "intended to enable a collective response to natural disasters". Natural disasters. The Greek debt problem is not natural. Even if it's those evil speculators, as the left-wing press seem to be saying, it's not natural - in fact you could say it's even more artificial. It's of their own making - they borrowed too cheaply for too long in the good years, built up a massive budget deficit, are in a lot of debt, and can't afford to borrow because they won't pay it back. That's not natural, that's their fault, and they should pay for it. It's certainly nothing to do with us.

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