Everyone’s talking about Europe’s economy. But at the heart of the crisis is a very different problem.
Greece is on the brink yet again. It has to pay the International Monetary Fund (imf) us$1.7 billion by the end of the month. And that’s the start of a gauntlet of loan repayments—it owes €10 billion by the end of September. Meanwhile, it has not agreed to a deal to get that money. With time running out, European officials are reportedly preparing for a catastrophe. “The Greek saga is finally reaching its climax, we think,” said Morgan Stanley’s head of foreign exchange strategy.
What will happen? Will Greece leave the euro? Will it submit to Europe’s bailout conditions? Will it trigger a financial crisis? I don’t know. But I do know that in the long term Greece is going to remain under the European Union’s influence.