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Submitted by Anonymous on
Ineed to say up front am no economist. But fundamentally, the European debt crisis is more a political and solidarity crisis than a financial crisis. The difficulty lay not so much in the amount of money needed to bail out Greece, Portugal, or even Ireland but as to who would be paying for it. Ultimately the Europeans have all the resources needed to handle the European debt crisis, the difficulties lies in agreeing on a mechanism that deals with it effectively and perceived as equitable by all countries participating in the currency. That is quite different from Russia in 1998, or Argentina in 2001. It was said more than once that the crisis is an opportunity to enforce certain budget disciplines on some of the countries that needed a bail out. In some ways it is managed crisis prolongation in an attempt at avoiding a future repeat of the situation. In many ways the tough measures forced through today for which there is little political or popular will, may well help secure the financial stability of the future. Is this democracy?? Not sure, but maybe it is the way to force certain necessary changes that nobody is willing to undertake on their own. As for democracy, Greece could have chosen to leave the EURO but the cost of that decision still appeared dearer to the electorate than the austerity measures endured now from the bailout.