November 24th, 2012


Euro or sovereignty. You gotta choose.

When earlier this year the Greeks were choosing a parliament, without it even being a done deal that this parliament would support Greece staying in the Eurozone, many in Europe's wealthier countries were asking themselves: how come a small, indebted, sick country is defining the very future of the whole EU? Because at the time it seemed that the Greek election would have serious consequences for all countries who have the Euro as their currency. In other words, turns out a single national election is suddenly hugely important for many other countries. So in this situation, should we expect that national sovereignty to yield to the common interest?

Well, actually Greece currently is already with a limited national sovereignty. For quite some time, the Greek political institutions haven't been able to freely operate with one of the most fundamental tools of any government - that national budget. Greece cannot freely decide what part of its tax revenue should go for defense, what part for pensions and how much the education system would get, for example. These decisions are now being taken elsewhere - the EU, the ECB and the IMF.

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