No Squaring The Circle

The following three things do not cohere – they are unworkable.

1. German Chancellor Angela Merkel’s insistence that there can be no going back on the pledges Greece made to get the second tranche of bailout money earlier this year.

2. The wish of 70 percent of Greeks to stay within the eurozone while at the same time failing to provide a working majority for a coalition government pledged to abide by the commitments made to secure the second tranche of bailout money.

3. Abiding by the pledges made to Greece’s European partners and the International Monetary Fund and being able to grow and cut the public debt.

In short, something has to give and the myth that Greece can possibly repay all that it owes,  ever – currently 161 percent of GDP – has to be dispelled. If it isn’t, then contagion will spread and the export market Germany needs to remain prosperous is going to disappear. And no amount of media commentary about disciplined, hardworking Germans and work-shy, lazy Greeks is going to square the circle.