Europe’s Monetary (Dis)Union
Europe's Progress Toward Economic Integration
New Opportunities and New Challenges
Euro Fantasies: Common Currency as Panacea
The Case for EMU: More than Money
EMU and International Conflict
The Dollar and the Euro
The Degeneration of EMU
The Future of the Euro
Why the Greek Crisis Will Not Ruin Europe’s Monetary Union
The Failure of the Euro
The Little Currency That Couldn’t
The Crisis of Europe
How the Union Came Together and Why It’s Falling Apart
Can Europe’s Divided House Stand?
Separating Fiscal and Monetary Union
Saving the Euro Will Mean Worse Trouble for Europe
Charting the Disastrous Choices Ahead
Can the Eurozone Be Saved?
Yes, but the EU Summit Was Too Little, Too Late
How to Save the Euro -- and the EU
Reading Keynes in Brussels
Why Only Germany Can Fix the Euro
Reading Kindleberger in Berlin
The Myth of German Hegemony
Why Berlin Can't Save Europe Alone
Europe's Optional Catastrophe
The Fate of the Monetary Union Lies in Germany’s Hands
Why the Euro Will Survive
Completing the Continent’s Half-Built House
Avoiding the Next Eurozone Crisis
How to Build an EU that Works
Europe After the Crisis
How to Sustain a Common Currency
Europe's New Normal
It's Here, It's Unclear, Get Used to It
So Long, Austerity?
Syriza's Victory and the Future of the Eurozone
Austerity vs. Democracy in Greece
Europe Crosses the Rubicon
Why Greece Will Cave—and How
Alexis Tsipras and the Debt Negotiations
Why Greece and Europe Will Still Stay Attached
How to Contain Athens' Economic Problems
A Pain in the Athens
Why Greece Isn't to Blame for the Crisis
The Agreekment That Could Break Europe
Euroskeptics, Eurocritics, and Life After the Bailout
Greek Prime Minister Alexis Tsipras’ decision to call a referendum on the latest plan for handling Greek debt—to which his government is urging the public to vote “no”—brought to a shocking end a week that started with high hopes of a compromise agreement between Greece and the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF). Many observers had long seen a referendum in the cards, but they expected Tsipras to call one in order to seek public approval for an agreement that he actually backed in order to outflank the far left within his own Syriza party. Instead, the man who argued for months that an agreement with Europe was the only possible path forward appears to be declaring “game over” with time left on the clock.
The odds of Greece leaving the eurozone have now substantially increased. Throughout the talks, Greece and its creditors have been desperately seeking ways around the political roadblocks in front of them. Syriza has promised that Greeks won’t have to choose between ending austerity and remaining in the eurozone. That, the politicians reassured voters, was Greece’s “democratic choice.” But the country’s principal creditors—other European governments—also face political pressures, and Syriza has done little to assuage concerns in Europe’s parliaments about throwing good money after bad and creating a moral hazard for future debtors.
With those two positions fundamentally at odds, and neither side willing to budge, a clean break between Greece and the eurozone might seem like the best option for Syriza and for many eurozone finance ministries. But the possibility of a clean break is an illusion.
Geography is particularly important. Greece lies at the heart of southeastern Europe, Europe’s least stable neighborhood. There are already signs that Bulgaria and Serbia are vulnerable to contagion from the failure of Greek banks. Instability in the Balkans was part of the rationale for Greece joining the eurozone in the first place. Full
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