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Greek Referendum

The EuroZone deal, which was put together last week and was prematurely lauded as a success, is beginning to unravel thanks to the decision of the Greek government to hold a referendum on the deal.  The Greeks (Athenians really) gave the world democracy, which comes from two Greek words meaning "mob/people" and "power/rule".  The irony for me is that the whole euro project, which is an entirely undemocratic one, may be dealt a death blow by the power of the people.

The big puzzle for many people seems to be why the EU keeps lurching from deal to another, yet there is no solution in sight.  Are the French and German governments incompetent?  Is the political dynamic within Europe too complex, resulting in gridlock?  My view is the EU elite have known for a long time that Greece (and maybe some others) will have to leave the euro, and they are happy enough to lurch from one unsuccessful deal to another as this allows French and German banks time to prepare for the huge losses they must incur whenever Greece (and others) eventually defaults.  It also allows the ECB time to prepare for Greece's exit from the euro.

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