Wednesday, August 22, 2012

The Eurozone Crisis Continues

by Austin Bay

Real Clear Politics

August 22, 2012

The Olympic games, ancient Greece's gift to the contemporary sports world, ended with a closing ceremony featuring British pop stars, aging rock icons and classical musicians. The show's promoters described it as a "mash-up" of British music.

Now the summer party's over, and the prospect of a eurozone smash-up has returned to the headlines, as key European Union leaders and international lenders meet to discuss modern Greece's fiscal menace to the eurozone and the global economy.

The menace to the eurozone is most immediate. Though Greece is by no means the sole culprit in the eurozone crisis, Greece is the eurozone's foremost economic mess. It is likely the zone's foremost political mess.

Greece's fractious government, organized in late June, yokes the center-right New Democracy Party, the Socialist Party and the Democratic Left Party in an uncomfortable coalition. To their credit, the troika understands that Greece must cut its government budget, begin to reduce its long-term public debt, reform the tax system, attack corruption and encourage private enterprise.

Yes, even Greece's old socialists now know that the private sector is where real, sustaining wealth is created.


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