“Indeed, Germany has no moral argument against debt forgiveness, as it has benefitted in the past from the generosity of its lenders. It has also benefitted in multiple ways from the current crisis, as part of the Greek debt was used to finance its exports to Greece, often with a substantial corruption shadow; it has also been profiting from loans to Greece at a higher interest rate than it paid to borrow those funds; finally, it has benefitted from the brain drain of Greek professionals and the flight of Greeks’ deposits and savings.
It should also be noted that it took repeated warnings from Washington to remind Europeans of the wider geopolitical ramifications of a Greek exit from the eurozone. And it took spirited resistance by France and a few other countries to prevent that black page in Europe’s history. […]
What is needed is a policy that goes beyond ‘bean-counting’, and tackles the Greek problem in the context of the EU’s regional and global role, not merely its economic policies. […]
First and foremost, Greek politicians should complete the implementation of necessary reforms, and its European partners should also learn from past mistakes regarding deeply recessionary policies offering little hope for development. Can self-defeating policies be reversed at the last minute? Can rational thinking and pragmatism prevail?”
No, it obviously can’t—as of today. And that is the reason why Greece should leave this club of ordoliberal “bean-counters” for good.