Thursday, February 25, 2010

Greeks Injure Own Cause

The deputy prime minister of Greece has, in classical Balkans style, dragged up the memories of German behavior in Greece during World War II. See this Daily Telegraph article for details.

Having done so is supposed to make the Germans of today, almost none of whom were alive then, more willing to provide financial bailout for Greece. I don't think it will work.

Never forgetting a wrong done to your ancestors, however many generations ago, is very characteristic of the Balkans. People in this region are world-class haters and grudge-holders.

Greeks insist on their government spending more money than it takes in, in good times and bad. And they engage in widespread tax evasion. Now they want the other members of the EU, mostly the Germans, to bail them out. Good luck.

If a bailout happens, it will be because the wealthier nations want to hold the euro zone together, not because the Greeks earned it. Spain will be next in line for a handout. Ultimately the euro experiment, encompassing both wealthy nations and poor nations, will probably fail.