Archive for November 2011
Historical events often have such gravity and impact that leave lasting scars on a nation and shape a country’s beliefs and policies for decades.
Germany throughout this eurozone crisis has been heavily criticised on a number of decisions, reluctance to adopt different policy mixes or deployment of alternative solutions to avert the contagion of the crisis from the euro periphery to the core. However, taking a closer look at one of Germany’s most destructive periods, both for economy and society, and the years that followed, one can easily identify parallels and interpret why the modern-day German leadership is standing firm, almost stubborn, in its beliefs for the resolution of this crisis.
The German hyperinflation of the early 1920s is probably the most famous hyperinflation in history and the most damaging ever to hit an advanced economy.
At the time of writing, the situation in Greece remains fluid, with the parliamentary majority (PASOK) and the major opposition party (ND) only last night agreeing on a general framework of a transitional government with elections to be held mid February next year.
Aside from the fact that the uncertainty since Friday left the country exposed to a number of catastrophic developments, disorderly default by mid December the most imminent, one of the most concerning aspects of the current situation is the obvious interpretation that the two main players in this effort of a coalition government seem to have put forward proposals that are based on short sightedness, personal and partisan agendas.
When in last Friday’s post I wrote that the Greek tragedy is far from over I could not imagine yesterday’s developments nor could I predict that, despite the country’s political deficit, prime minister Papandreou would be willing to gamble with the country’s future by calling a referendum on the agreement of last week’s summit.
It is outrageous that in every single statement of government officials, including the prime minister in yesterday’s speech to his MPs, one hears arguments along the lines that the Greek people will have the opportunity in the referendum to vote for the country’s participation in the European community but at the same time need to take responsibility of their actions.