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Conservatives suggest Greece leave Euro currency union

The Local · 24 Apr 2010, 11:41

Published: 24 Apr 2010 11:41 GMT+02:00

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“Greece has not only a liquidity problem but also a fundamental growth and structural problem,” Hans-Peter Friedrich, MP for the CSU told Der Spiegel magazine on Saturday.

He said this should prompt Greek politicians to “seriously consider leaving the Euro-zone.”

Such a step should “not be declared a taboo,” he added.

His thoughts were echoed by Werner Langen, head of the Christian Democratic Union/CSU group in the European parliament.

“I am extremely sceptical as to whether the aid package conforms with European Union law and the German constitution,” he said.

“The real alternative,” he said, would be for Greece “to leave the currency union and become competitive again via hard structural reforms.”

Story continues below…

The Greek government appealed on Friday for tens of billions of euros in help from the EU and the International Monetary Fund to shore up its economy. More than €8 billion of that would come from Germany.

Chancellor Merkel has said she would be reluctant to help unless the stability of the euro was to be threatened and the Greek government implemented tough reforms.

The Local (news@thelocal.de)

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Your comments about this article

12:48 April 24, 2010 by Prufrock2010
I almost never find myself in agreement with conservatives, but this time I do. Greece's failed economy is indicative of a fundamental flaw in the common currency concept, where there is no means available for a profligate nation like Greece to solve its own economic problems by printing money and enduring some inflation. Hence, as this case illustrates, the weaker or collapsing economies within the euro zone will inevitably pull down the stronger ones. That's why most Germans and French opposed the common currency in the first place, as they feared just such a scenario.

Either Greece should leave the euro zone or Germany should. Neither Germany nor the EU should be saddled with the economic problems of the PIIGS nations.
14:12 April 24, 2010 by Bensonradar
It's common knowledge that Greece has lived beyond its means. Their public service sector was a running joke, with civil servants running private businesses. Their middle classes turned tax evasion into an art form.

They have nobody to blame but themselves. The previous government hid the deficit, so George Papandreou's incoming administration were caught out.

Moody's downgraded the country's bonds to A3 status, four notches above junk. The cost of insuring Greek debt (CDS) jumped 565 basis points, reaching 200 points above that of Iraqi debt.

But loaning them more money means they have to pay that back as well. Without a strong tax and internal fiscal policy, how are they going to pay it back?

Greece's debt will never end. Mark my words. Then the UK, then Spain etc etc.
14:33 April 24, 2010 by dcgi
I'm hoping this goes on as long as it can; it looks to be helping the pound strengthen against the euro.
18:25 April 24, 2010 by wmm208
Wont happen. That would break the Maastericht Treaty rules. What do you say to Portugal, Spain, Italy? They have to leave? Then it looks ridiculous for Germany. Obey and pay. Dont forget die zahlen bitte...
22:42 April 24, 2010 by Zeus Jr.
Yes, Greece cooked its books to appear compliant, yes Goldman Sachs cooked Greece with elaborate deception to magnify the debt to Goldman. Yes, Greece needs to get out of the Eurozone urgently to devalue and avoid the IMF as much as possible. The IMF is a criminal entity with a record of turning shoddy countries into starving ones, and literally starves children to death by eliminating jobs in order for salaries to go towards debt. Its the Bono of U2 cause... The IMF are swindling murders... food beats pride Greeks, get out of the Eurozone alive!
23:15 April 24, 2010 by wxman
Nobody saw this coming from the start? This was a given from the beginning, and there are more to come. The Brits are sitting there on a pile of Pounds laughing.
23:27 April 24, 2010 by wmm208
wxman: Sit back and enjoy as the malaise and the denial of the welfare state has blinded everyone in Eurination. Its too late...
23:28 April 24, 2010 by Logic Guy
Well, perhaps now everyone realizes that the single currency concept was illogical to began with. You simply can not have a stable and prosperous Global Network, if there are no laws prevents one nation from destroying others down.

At this point, the responsibility of bailing out trouble nations should fall upon the shoulders of the IMF.

The entire continent could go broke otherwise.

There are hundreds of millions people in Europe. Surely there are at least a few intellectuals?
23:36 April 24, 2010 by wmm208
Logic Guy:

Now? no, like 2 years ago, thats when everyone realized the Euro would fail. When Greece started riots in "2008"...Thats when... The world doesnt need "intellectuals" and "philosophers" anymore. They need do'ers and workers. The welfare state denies this mentality. Party is over....Germany must pay....The IMF wont be used for "developed" nations anymore...Because the next crisis will be the "emerging" countries who "really need" help not pensioners in Greece, Spain and Portugal so they can have their drinking and kaffe money. These people will need food, clothes and water...The IMF will not be used after Greece. I know that for a fact...
23:40 April 24, 2010 by kojak
"The Brits are sitting there on a pile of Pounds laughing. "

Sorry to tell you there is no pile of pounds to sit that left for the brits, because now they are sitting on a mountain of debt.
00:02 April 25, 2010 by wmm208
kojak: The Brits can monetoze their debts. Countries within the Eurozone Cannot do this. Restructuring will happen to many countries. Bailouts will happen. Social unrest will happen. Dont worry about the Brits. The Brits can worry about themselves and they have their OWN currency to help their own debts. The Euro area is facing a political crisis now. Schade...
01:18 April 25, 2010 by Prufrock2010
Peschvogel's (wmm208's) sole purpose is to disrupt any intelligent discourse on any subject on this forum with unintelligible rants. Just ignore him, like any other petulant 12-year-old demanding attention. Schade...
02:17 April 25, 2010 by Beynch
Suggest they leave???? They should be kicked out!! Greece is a bureaucratic sewer riddled with unionized workers who don't do a damn thing. Greece must re-think its role in the EU and stop being a leech to the rest of us. The government there has much too much influence on everything and the unions have a stranglehold on the economy. Dump Greece now. And let it be a lesson to others!
02:42 April 25, 2010 by Volatile Barry
Any chance of the Greeks getting a vote on whether to leave? Unlikely considering the anti-democratic modus operandi of the EU. Still, it could be the first domino. We live in hope.
02:51 April 25, 2010 by wmm208
There will be many more Greec'es because when yield on sovereign debt is being driven, currency comes into question. Investors will sell, sell, sell...There is no hope...
09:54 April 25, 2010 by kojak
Ok Prufrock2010,thank you for informing me.
10:20 April 25, 2010 by dotcoma
Just my 2 cents, but Greece out of the Euro means a much much bigger mess to clean up for everybody just a few months down the road...
14:52 April 25, 2010 by cocovelvet
Honestly speaking, I never saw the idea of a single euro currency a very logical idea....... basically my fear was a similar situation happening like now with Greece. It looks quite cruel and careless to just kick them out of the euro zone , but if thats an option, let it be. Greece can only bring instability to the whole euro zone indeed...... die arme Griechen, pesch gehabt !!!

Next time pull up your socks well in time.
23:45 April 25, 2010 by Logic Guy
Well, I must say that I agree with Prufrock2010, regarding Peschvogel.

When The Local first included the idea of reader feedback, I'm sure they weren't thinking about having misguided people who intentionally create dishormony.

The world will never improve as long as such people put up roadblocks.
01:39 April 26, 2010 by wmm208
Coco: Its too late to denounce your currency.

Logic Guy: You win the Ghandi of the year award. "Opinions" are valued in a free society. Not in a polizei stadt such as teh one you live.

Roadblock for a unified Europe = Greece, Spain, Portugal, Italy...

You must retire at 85 now. Get some rest. The Greeks need your income soon so you need to work hard this week. Schlaft gut
13:38 April 26, 2010 by Essertpitay
The Euro is a great concept, it is/will be part of history...On the other hand, the Greeks are history. They have abused willingly/knowingly the system, they should pay for themselves.

Let us kick them out and get the Turks in instead...
14:42 April 26, 2010 by AirForceGuy
How much debt did the US 'forgive' of Germany's after WWII? Now that Germany is the "Big Man' in the EU, thay must play the part the US did for them in the late 40's and 50's... The shoe is on the other foot now!
17:10 April 26, 2010 by Prufrock2010
The Greek economic crisis is of Greece's own making, the result of a fraud perpetrated by Greece on the EU with a little help from Goldman Sachs. Greece knew that the fraud would be discovered sooner or later, but counted on the fact that it has the EU over the barrel. It is the economic equivalent of mutual assured destruction -- "we we go down we're taking you all with us."

And, as with the case of the worst offenders on Wall Street, it seems to be working.

To "forgive" Greece's debt would be paving a superhighway to perdition.
21:34 April 26, 2010 by wmm208
"One Size Fits All Interest Rate" - The downfall of the Euro - Structurally flawed
08:18 April 27, 2010 by LMB222
This is actually a good suggestion, for a simple economic reason: own currency = devaluation when bad times come = exporters survive, importers pay more. This way your Greek John Kowalski will think he is earning the same salary, while his TV suddenly will cost more, as it should. Otherwise it is practically impossible to lower salaries without massive protests.

I know two other examples of countries that went down because they tied their currency to a better economy: DDR and Argentina. Both paid dearly for the experiment. Hence Greece should leave euro.

But of course this will not happen. Greeks seem to be people of very overgrown ego; they were trying to join eurozone just to be in the club, and not for economic reasons, and being kept away in 1999 was a signal that maybe it's too early.
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