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The Germans are right, Greece can’t control its own budget

2012-02-01T09:53:48-05:00

Germany is catching a lot of flak from Greece and other European Union states over its Finance Ministry’s suggestion last week that an EU budget commissioner should have the temporary power to override Greek budget decisions should they be counterproductive to reducing Greece’s deficits. After all, Greece and the EU are demanding a third bailout from the EU (for a total of 145 billion euros), and no country in the EU has the money except Germany. And German citizens have had enough of bailing out other countries which are unable to control their own spending.

Hence the Germans’ suggestion that the EU control the Greek government’s spending for a time.

It’s not like Germany wants to control Greece’s budget and spending. They just said that the EU should control it for Greece.  I think that’s perfectly reasonable. Greece has already demonstrated that it can’t reform its own spending, so someone else is going to have to do it for them. And as long as Greece is spending other people’s money to survive, those creditors should be able to control how it’s spent.

Or, no more money from Germany. And Greece will then probably leave the eurozone, which will destroy confidence in the euro and probably make it collapse.

Personally, I’m fine with that. I thought the euro was a bad idea from the start, simply because a common currency requires a truly unified, common center of government, and the EU doesn’t have that. They don’t even have a common culture, other than socialism. The idea looks great on paper, but it’s unworkable in practice.

Germany is right about having someone else manage Greece’s budget, even if Greece and the other Euroweenies object to the very idea. Greece has already demonstrated how well it can manage its budget, right into the ground. Time to let someone else have a crack at it.

One Comment
  1. Malou permalink
    2012-02-03T08:03:36-05:00 08:03

    I totally agree with you that since Greece can’t control her own house and finances, the one providing the bailout should do it for her. The Greek reasoning that to give in to the German demands is tantamount to giving up their sovereignty doesn’t hold ground anymore as they have no way of standing up to their pride if they cannot afford to settle their own debt.

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