by Marcel Michelson
May 3, 2015
Greece’s economy is at the brink of an abyss and could pull the entire euro area behind it into the dustbin of history, ending a formidable project of economic cooperation, prosperity and peace in a continent blighted by centuries of wars and plagues, culminating in the horrors of World War Two.
Germany started and lost that war, 70 years ago.
Now, Germany is standing strong and is calling the political shots in Europe - strengthened by its robust economy – to the point of pushing for a prolonged cure of austerity for the anemic European economy.
Repeated calls for “pro growth” stimulus measures – by pausing the state debt reduction programs – by some leaders from France, Italy, Spain or, indeed, Greece are stifled by a comfortable cushion of conservative consent.
Only the European Central Bank has managed to overcome German resistance to implement is expansionary monetary policies as a way of providing breathing space in the economy while the national coffers remain shut.