Downhill PV wrote:
it doesn't take much logical contortion to see where we might be going with this.
One could argue that the Euro has structural faults precisely to create the beneficial crisis which will lead to more integration.
It's certain this was foreseen and the logic ran that Greece etc would run into trouble and could be rescued by the EU on its own terms. However other things weren't foreseen such as the rise of China and the general debt crisis which has become apparent since 2007 leaving the EU in no position to dictate in the way it intended and having to bend it's own rules - a very dangerous manouevre. Maybe having more than one nation in a mess at the same time was also unforeseen. So the crisis they intended is worse than they thought it would be and at a time when they are less able to deal with it than they imagined they could be. It's also clear that expectations have been raised in Greece which whatever happens, have to be reset and that was always going to be hazardous.
Downhill PV wrote:
Also, let us not forget to whom Merkel is answerable (or beholden). As a CDU politician she is essentially the political front person for the German industrial elite ... who have been screaming for at least 2 years now that they want a lower exchange rate for the Euro. So is her handling of the Greek crisis incompetent or deliberate? It could be deliberate, as it is indeed leading to a lower exchange rate for the Euro, much to the dismay of the German banking elite who are driven by the idea of 0 inflation (and therefore high interest rates and a strong Euro). We still haven't had a reasonable explanation of why Weber was pulled out of the race to become ECB Chief by Merkel.
I don't know about the domestic pressures on Merkel, but it's a mistake to believe that such people always know what they are doing or are acting for motives which are responsible or rational. They can end up like the pilot of a crashing airliner, frantically pulling levers and operating controls in the hope that something will happen, and because they can't think of anything else to do. As for Weber, many of these decisions are taken on the basis of the interplay between personalities, as in WWII leaders and their generals and the generals amongst themselves.