Why Germany Wants Rid Of Greece

When I lately visited Berlin, it chop-chop became clear the extent to which Federal Republic of Federal Republic of Germany had created a fantasy floor nearly Greece. It was an icon of Greeks every bit a privileged as well as lazy people, who kept on taking ‘bailouts’ spell refusing to create anything to right their situation. I heard this fantasy from talking to people who were otherwise good informed as well as knowledgeable nearly economics.

So powerful has this fantasy become, it is forthwith driving High German policy (and policy inward a few other countries every bit well) inward totally irrational ways. In particular, Federal Republic of Federal Republic of Germany refuses to hash out debt relief alongside Greece, nonetheless seems quite happy to run into Hellenic Republic larn out the Eurozone, the inevitable consequence of which would live that Hellenic Republic would obtain much greater debt relief through default. Talk nearly cutting off your olfactory organ to spite your face. What is driving Germany’s desperate demand to rid itself of the Greek problem?

One possible answer is that Federal Republic of Federal Republic of Germany finds the truth nearly Hellenic Republic besides upsetting, besides challenging. This is because since 2010 Hellenic Republic has done most of what the Troika asked of it. In particular, changes inward its government’s underlying primary budget residuum (i.e. the score of austerity enacted) own got been greater, past times a long distance, than whatever other European economy. For many exterior Federal Republic of Federal Republic of Germany what has happened to Hellenic Republic every bit a final result is hardly surprising: austerity is contractionary, as well as austerity on steroids is ruinous. Yet Federal Republic of Federal Republic of Germany is a province where the ideas of Keynes, as well as so mainstream macroeconomics inward the relaxation of the world, are considered profoundly incorrect as well as are described every bit ‘Anglo-Saxon economics’. Hellenic Republic as well as then becomes a form of experiment to run into which is right: the High German view, or ‘Anglo-Saxon economics’.

The results of the experiment are non to Germany’s liking. Just every bit ‘Anglo-Saxon economics’ would own got predicted, the results for Hellenic Republic nether the Troika own got been a disaster. After dutifully taking the medicine for years, as well as seeing the collapse of their economy, lastly the Greek people could accept no more. Confronting this reality has been besides much for Germany. So instead it has created its fantasy, a fantasy that allows it to cast its failed experiment to 1 side, blaming the grapheme of the patient.

The solely affair peculiarly High German nearly this procedure is the minority condition of Keynesian economic science inside High German economical policy advice. In the past times I own got drawn parallels betwixt what is going on hither as well as the much to a greater extent than universal vogue for poverty to live explained inward damage of the personal failings of the poor. These attempts to deflect criticism of economical systems are encouraged past times political interests as well as a media that supports them, every bit nosotros are currently seeing inward the UK. So much easier to pretend that the problems of Hellenic Republic prevarication alongside its people, or culture, or politicians, or its resistance to item ‘structural reforms’, than to acknowledge that Greece’s existent occupation is of your making.