Noonan and Feta Cheese.

Francie Barrett wrote: »

Noonan is only telling it how it is. He is perfectly correct in his statement though. Greece isn't a major trading partner for Ireland, and should they be ejected from the Euro, no one is going to miss them.

Quite illuminating but I disagree! Eject Greece from the Eurozone, no one will miss them? I dont think the financial markets who are the ultimate deciders will follow your logic.

Once Greece leaves the Euro, the attention will be shifted ( if it hasnt already) to other heavily indebted member states. Unless we want to be naive, the contagion effect of Greece or any member nation leaving the Euro will be catastrophic. There is talk of building a firewall to protect other countries but Germany is not ready to make any further financial commitments, their argument is that until other EZ nations sign up to the fiscal treaty, it is just like putting German tax payers money down to the drain to pay for pensions for a retired 50 year old Greek hair dresser. They are right to some extent but they seem to forget that:

(1) These rules should have been put in place before the economic monetary union? was set up, with a strict regulatory framework and with defined mechanisms for the enforcement of these rules. Germany broke the rules of the SGP before the current crisis and now they are making the rules as the crisis progresses and leaving no room for flexibility.

(2) A union is underpinned by symbiotic relationships. Germany has benefitted enormously from the Euro. As an export nation, it has successfully sold her products and services to other countries while having a competitve advantage. Germany cannot eat its cake and have it. During the boom years, they sold their products to Europe, while providing them cheap credit to purchase them-these products also includes military equipments supplied to Greece by the way. I am wondering where the efficient Bundesbank was at the time to warn, curb or control excessive spending?

I am not absolving Greece or any other struggling EZ nation of blame, far from it but the level of villification is breath taking. Greeks have been referred to as lazy only for us to find out they work more hours than Germans, French, Austrians and indeed Irish people.

France wants a change in direction, the Netherlands is advocating for a relaxation of the fiscal rules, Spain have openly declared that it cannot meet elements of a fiscal treaty they signed up to, the Italian workers unions are resisting change,the USA says they wont contribute a cent to the IMF to bail out Europe, Canada is even more critical and adamant suggesting that IMF funds should go to countries that actually need them, the BRIC countries are towing similar lines and China is patiently waiting in the wings to buy any state assets up for sale.

Don't you see this is greater than a Greek problem? Is it not time for a rethink of the current policy direction instead of the current blame game?