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The problem isn't whether or not Greece defaults. One way or another it has already past that post. The problem is how Greece continues to provide for the desires of Greek citizens to enjoy the comparable levels of social welfare benefits that citizens of the wealthier EU nations do.  (For example, right now, public spending in Greece is just 40% of GDP, about the same as the US, which is the lowest, or near the lowest, in the industrialized world.)

It appears almost impossible for that to ever occur, given the structure and resources available to the Greek economy relative to what other eurozone economies enjoy, without significant transfers of wealth from richer states to Greece, or without Greece being able to implement its own monetary policy. It's a contradiction embedded within the EU framework that requires a solution, and that solution is likely going to injure the interests of at least some powerful classes in the wealthier countries.

by santiago on Thu May 6th, 2010 at 06:49:59 PM EST
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