Paul Krugman’s analysis over at the New York Times seems about right, I have read many similar interpretations regarding the Greek Government-Banks-EU-Germany intricate web of political economy that may or may not lead to a Grexit in a couple of months. July, is that right?
But I disagree with something that though it may somewhat tangential to the article, I suspect it isn’t. Krugman writes towards the beginning that if “Europe” cannot “deal with reality in a way that respects the Continent’s core values” trouble lies ahead. I wonder, core values? He then asserts that “the whole European project — the attempt to build peace and democracy through shared prosperity — will suffer a terrible, perhaps mortal blow.”
I essentially don’t agree that the EU or more specifically the Eurozone is a project of democracy, peace or prosperity. I cannot accept such an interpretation of what has been, as many social science researchers & analysts know and have argued, a very non-democratic project. Prosperity, perhaps in that 1% or rather 0.01% sort of way, but democracy, i.e. popular sovereignty, surely not!
Krugman on Europe’s Greek Test, through here.