March 2nd, 2015
by Dirk Ehnts, Econoblog101
After much vilifying in the German media, this video is a welcome change. We should get used to Varoufakis as the first in a long succession of Greek finance ministers fighting a political fight against the German finance minister. Given that Greece reaches a primary surplus of 4.5% and keeps it there - no country has even come close to achieving this - and a zero growth rate on average (sorry, but I think that is a realistic assumption) Greece's government debt will fall below the 60% declared the maximum of "just right" by the Maastricht Treaty in 2039! Lots of fun for the media and the politicians? I don't think so.
Europe is on a slippery slope, even if Greece stays in the euro. Apparently, Greece will not reach the 4.5% primary surplus after the most recent negotiations, just as France and Italy will not hit their targets this year. European nations have given away their sovereignty and now they find out the hard way that Germany has taken over. Admitting this is difficult for those parties that supported the euro, but the realization will be made. It is obvious.