As oft said here, it was known in advance the Euro would fail. You don’t make mistakes affecting millions of people and entire countries like this by accident. The Fourth Reich has landed and within time will have its predetermined solution to the engineered crisis.
EU elites who forced a currency experiment on countries not ready for it have only themselves to blame
The political centre across southern Europe is disintegrating. Establishment parties of centre-left and centre-right – La Casta, as they say in Spain – have successively immolated themselves enforcing EMU debt-deflation.
Spain’s neo-Bolivarian Podemos party refuses to fade. It has endured crippling internal rifts. It has shrugged off hostile press coverage over financial ties to Venezuela. Nothing sticks.
Europe’s policy elites can rail angrily at the folly of these plans if they wish, but they must answer why ex-Trotskyists threatening to dismantle market capitalism are taking a major EMU state by storm. It is what happens when 5.46m people lack jobs, when 2m households still have no earned income, and when youth unemployment is still running at 51.4pc, and home prices are down 42pc, six years into a depression.
It is pointless protesting that Spain’s economy is turning the corner, a contested claim in any case. There comes a point when a society breaks and stops believing anything its leaders say.
The EU elites themselves have run their currency experiment into the ground by imposing synchronized monetary, fiscal, and banking contraction on the southern half of EMU, in defiance of known economic science and the lessons of the 1930s. It is they who pushed the eurozone into deflation, and thereby pushed the debtor states into accelerating compound-interest traps.
Mr Varoufakis is trying to limit the damage, praising Mrs Merkel as the “most astute politician” in Europe, and Mr Schauble as the “only European politician with intellectual substance” – a wounding formulation for the others. He has called on Germany to cast off self-doubt and assume its roll as Europe’s benevolent hegemon, almost as if he were evoking the glory days of the Holy Roman Empire when pious German emperors stood as guarantors for Christendom.
This is the only pitch that will work. Angela Merkel has risen above her narrow East German outlook and her fiscal platitudes of the early crisis to emerge as the soul-searching Godmother of Europe and the last credible defender of its unity. But even Mrs Merkel can be pushed too far.
Full article: Germany faces impossible choice as Greek austerity revolt spreads (The Telegraph)