Greece’s Default

On the first day of this month of July, the government of Greece allowed the deadline do pass on the payment of its EU debt.

This event opens the way for the Greece to be the first country to leave the Eurozone, which will open up the way for others, in particular the Mediterranean countries and possibly Ireland, to follow.  It may also influence the question of the UK’s possible withdrawal from the EU.

The imposition of a single currency across countries at different levels of economic development, as is the case between the northern and southern European countries, never made economic sense.  Likewise, the imposition of the massive superstate that is the EU across the European continent made little political sense.  What we could be witnessing here the first crack in the edifice that holds the EU together.

Who could have imagined, when the Berlin Wall came down and free travel was permitted between the two Germanys, that a political chain reaction would be set off that would lead to the collapse of the entire Soviet system within two years?  The EU serves as the mechanism to keep the nations of Europe in ideological subjection to modern liberalism just as the Soviet Union and the Warsaw Pact did for communism in the previous century.  Whether Greece’s exit from the Euro would bring the EU down as fast as the the fall of the Berlin wall brought down the Soviet Union, I cannot say.  Actually, it probably won’t.  It will, however the beginning of the end of the political order imposed on Europe in 1945, and open the door for genuine European sovereignty.

I’ll add a brief comment on the results of next Sunday’s referendum on whether Greece should accept the EU’s proposed bailout package.  The polls seem to show it will be very close…

Well Greece has rejected the austerity measures.  Either Greece is getting out of the Euro or the Euro is in for a world of hurt.  Possibly both.

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