However, in order to succeed, Europe needs more money, and therein lies the problem. The size of the bailout fund is not sufficient, so more sacrifices are expected from the Greek people. Besides, the EU’s help is not a gift, but a loan. In other words, debt-ridden Greece will be more indebted and will mortgage their future in order to prevent the eurozone from collapsing in its entirety. If Greece was the only country in this difficult situation, a solution could be found more easily, but many other EU countries face similar debt crises, and the rich EU countries are simply not capable of saving them all.
Greece has to reduce spending and efficiently use the loan given by the EU. However, reducing public spending means that the Greek people will be impoverished and have less social programs from now on. One can make mathematical calculations and claim that a country’s economic situation will be ameliorated in a few years; however, governments have to make political and sociological calculations, too, to see what lies ahead for their country.
Germany considers itself to be the main savior and probably expects the Greek people to work and act like Germans. Germans would also like to see Greeks express their gratitude, but instead they see an angry nation accusing them of putting their country into a stranglehold. The austerity measures imposed by the EU are deeply unpopular and have caused riots in Athens, where buildings were set on fire. It must be quite unpleasant to observe that you loan someone money only to find that person hates you more with every passing day.
The EU has given fish to countries in difficulty instead of teaching them how to fish. The fundamental problem of Greece and the EU countries facing similar problems is that they have absolutely no competitive power in the global markets. EU member countries, however, don’t have to become competitive individually as they are parts of a bigger whole. However, with time, some members of the EU have become the earners while others were condemned to be perpetual spenders.
Such a dichotomy within a union is the main reason for its possible disintegration. It is against the logic of an integration movement to have some members who continue to prosper while others face eternal economic problems. On the other hand, if the member country in economic difficulty keeps other members from prospering, then maintaining the integration becomes pointless. Germany is aware that Greece drags down other EU members, so it defends the “one prospers while others are impoverished” formula. France is perhaps Germany’s only partner with regard to this policy because Paris believes that it is better to have a rich rival than a poor friend. Germany want to save Greece, but it also wants to continue prospering, and that’s why it insists on keeping Greece in the system.
The rescue process, however, has become so costly that Germany now hopes help will come from China. However, the latter will help Germany only if the EU supports China in its rivalry with the US. But agreeing with China is a very risky decision for Berlin in the long run, since Washington prefers the EU to support the US and not China or Russia. The US believes that the American economy’s recovery will be swifter with European support, and it promises the EU that when the American economy is better, it will rescue the eurozone in good time in return. However, the being saved by the US means going back to the “an economic giant but a political dwarf” model for the EU.
Germany is approaching one of the most important decision moments in its history: It will either put the EU at great risk or under the “protective wings” of the US.
