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Montag, 23. Februar 2015

Philippe Legrain: Greece Should Not Give In to Germany's Bullying. It's not just a question of being morally right - it's sound economics. And Athens has a lot more leverage than anyone thinks

"Let's face it: no advancrd economies in living memory have been as catastrophically mismanaged as the eurozone has been in recent years, as I document at length in my book, European Spring. Seven years into the crisis, the eurozone economy is doing much worse than the United States, worse than Japan during its lost decade in the 1990s and worse even than Europe in the 1930s: GDP is still 2 percent lower than seven years ago and the unemployment rate is in double digits. The policy stance set by Angela Merkel's government in Berlin, implemented by the European Commission in Brussels, and sometimes tempered - but more often enforced - by the European Central Bank (ECB) in Frankfurt, remains disastrous. Continuing with current policies - austerity and wage cuts, forbearance for banks, no debt restructuring or adjustment to Germany's mercantilism - is leading Europe into the ditch; the launch of quantitative easing is unlikely to change that. So settling for a 'compromise' that shifts Merkel's line by a millimeter would be a mistake; it must be challenged and dismantled."