The unelected President of the European Commission, Jean-Claude Juncker has said that Sunday’s referendum is a vote on whether Greece will stay in the euro. That is not what the Greek referendum says.
This is a clumsy attempt by the EU to interfere in a sovereign nations decision to hold a national referendum.
Greece is caught in a trap. It was encouraged to join the Euro, despite having an economy and working practices that made it an unsuitable member. Predictably, a one size fits all Euro has failed to cope with the Greece economy and it seems Greece is to be punished.
I suspect that Greece will be punished, not for having economic difficulties so much as having the audacity to stand up to the EU. For too long the European Commission has ruled with impunity. Unelected and unaccountable to any democratic process they proclaim and member states obey.
Not anymore it seems.
Clearly being in the Euro is not working for Greece. If they leave the any new currency they use could devalue making tourism flourish again which would help the economy much more than increases in VAT as the EU want.
What concerns the EU is that it was never thought that a country might leave the Euro. Nolans exist to cope with this and it flies completely in the face of the ” ever closer union ” EU mantra.
If Greece leaves the Euro it might very well fundamentally change the nature of the Euro. Instead of being a currency it might end up being a glorified currency exchange peg. Historically, such exchange rate mechanisms fail.
So why does anyone believe the Euro will ever succeed?
The gut wrenching fear in the EU, right now, is that member states have learnt that they can stand up to it and say NON.