The importance of coordination
If one can get past the Greek political system?s incoherence, as well as our powerful European Union partners? contradictory positions, one might reach the conclusion that the sole term which still carries any weight is that of ?coordination.?
Rightly so, one would argue, because the current crisis is the result of the global financial system?s lack thereof. Consequently, the issue here is a return to order and if ever there was a European country which dislikes disorder as a concept and as a state of affairs, it is Germany, irrespective of the circumstances.
There has been much discussion about the possibility of a Greek bankruptcy. Essentially, the country has already defaulted. It has not defaulted on its payments because it is still getting loans outside of the markets to pay its creditors until its economy is restored to health and it?s ready to return to the markets. All of this has become common belief and we are now awaiting either a miracle or the results of truly unacceptable government conduct.
Nevertheless, as the eurozone?s financially sane countries have –beyond their belief in miracles — common sense, they are working on a plan B or C in the eventuality of a Greek bankruptcy, even though they occasionally deny it. The issue of altering the dosage of the treatment is no longer an option — which Finance Minister Evangelos Venizelos realized the hard way when he tried to introduce a political dimension to the discussion.
This is when the need for ?coordinated? action comes into the picture. Despite the cacophony from some eurozone governments, Greece is receiving loans in a ?coordinated? fashion. Even in the case of an unfortunate bankruptcy, action will be entirely ?coordinated,? whether the country remains in the eurozone or is forced to return to the drachma until its economy acquires a certain degree of competitiveness.
Therefore, the issue is for Greece to remain dedicated to the EU system, as there is no outside solution, not from the USA, China or Russia. Right now, the Union?s fate is in the hands of Angela Merkel?s Germany in collaboration with Nicolas Sarkozy?s France.
If the Greek political system — chiefly the two main parties — were in close contact with the EU?s greatest power, as they should have been, they would not be surprised by certain statements made by various German officials.
Consequently, the problem is the incredible provincialism of the Greek ruling class, which Europe?s political leadership is trying to bring to its senses, sometimes in a cruel manner, especially the German leadership, acting — truth be told — according to its nature.
