That is the Eurozone question…
The crisis comes because Greece, like Iceland and Ireland before it, is basically bust, running unsustainable deficits. The remedy, namely huge layoffs in the public sector and our old friend “fiscal discipline”, falls somewhere between kill and cure.
The crisis also reflects the fundamental, unaddressed problems within the Eurozone: there’s no unified financial authority that might issue bonds to help the Greeks bail themselves out and there’s no ability on the part of weaker member states to use currency devaluation as in the drachma days of yore.
It appears the Eurozone will call in the IMF, but the reality is that weak EU economies like Greece can’t sustain ongoing euro membership without substantial, long-term social and economic instability.
Gorilla sums it up: “Doesn’t matter if you’re Scylla or Charybdis, you will drown in Brussels or drown in the Aegean!”
