Syriza versus the Bundesbank for the soul of the eurozone
May 24, 2012 6:35 pm 5 Comments
There is a vital semantic difference between “planning to” and “making contingencies for” an event. This today’s reports of widespread plans for Greek euro exit were not quite as shocking as they sounded. Right now, no one is talking about a “plan” to force Greece out. Quite understandably, however, there are widespread contingencies being prepared for a possible decision by Greece to leave the euro.
Private banks and car companies have been doing this for months, as I reported from Davos in January. I understand that governments have been looking carefully at the example of what happened when Czechoslovakia split. Czechs and Slovaks had to queue up to get their banknotes stamped. Capital controls were introduced. Some degree of state security had to keep order.
Does this mean Greece is heading out? No, but it is a sign that the chances are rising. It is, at the very least, part of the brinkmanship between the Greek leftists that want to tear up the EU bailout deal, and the EU governments that are funding it.
Continue reading and comment
