Euro Zone Crisis Muddle

Euro Zone crisis has become nauseating, as it never tends to leave the theme of ‘A EU country asking help, ECB – EU leaders meeting, recovery package announced subject to stringent conditions on the debtor, then again a renewed cry of help, markets gone jittery, protests in the beleaguered country and again the next round of insane meetings.’ Last 2 years will bear testimony to it. However, the gyst of the whole story still beats the thinkers who keep on exploring means to lengthen the crisis.

Actually the whole saga is not Martian theory; it is well-known to these people that the whole concept of a single EU with a common currency-Euro is an impractical idea which can’t sustain for long. A unified politico-economic bloc demands a level-playing ground sans any country-biased approach, but which also goes against the very basic tenet and proclivity of human, social or national aggrandizement at the cost of others. To ask nations not to look ahead without pulling others with them is a far-fetched requirement at this point of our evolution.

As pointed by the magazine The Economist too, EU was formed more out of expediency than sagacity. Greece was admitted without having the requisite GDP-debt servicing ratio, tight financial conditions, prudent economic policies etc even at the time of its joining the EU. On the other hand too, many countries had to go unnecessary roll-over to pass the Euro requirements. The newly joined states, esp. Baltic states, are finding it difficult to meet them, even though they wish to adopt Euro.

In a nutshell, the individuality of a nation is suffering, and it is prudent now to let go the nations their way, should they desire so. There is no point in taking Greek people to the gallows for just the sustenance of this crazy idea. For the time being though, let Greece default partially, restructure its debts, French-German banks absorb some of these losses, and ECB put enough weight behind to sustain the Euro. That could be the ideal balanced way right now to get out of the quagmire.

But will the power-wielders, read Germany, France etc, listen, no matter what the lesser EU countries and the rest of the world are going through.