Greek debt crisis

Despite denials over the weekend, some European editorial writers debated whether Greece might consider leaving the eurozone.

That much is clear, Die Presse from Vienna wrote: if Greece gives up membership of the single currency, such a move will have to be discussed for Portugal, Ireland, Spain, maybe Italy as well. "Then, the euro, and with it the European Union, is dead." It is also evident, the paper added, that the union cannot permanently save countries unable or unwilling to reform. The Austrian daily suggested debt restructuring instead, including a so-called 'haircut' payment from the country that has for years lived beyond its means, as well as from the creditors who frivolously granted loans while profiting from high premiums.

Germany's Süddeutsche Zeitung accuses European politicians of acting irresponsibly. "Leaders in Berlin, Brussels, Paris, Rome and Luembourg stayed mum, deceived and even told bare-faced lies," the paper wrote. "All of it simply to hide the fact that there was a meeting taking place...Within a few hours, EU governments managed to forfeit the last remaining sliver of trust citizens may have had in their rescue mission," it said.

Le Figaro from France warned that, whatever Greece is offered next in the form of aid, "it would be unreasonable to impose further strict requirements." Greece has already cut wages and pensions and increased taxes, the paper wrote, adding that Athens has exhausted its possibilities and is "unlikely to find secret treasures hidden underneath the Acropolis." Rumors of a Greek exit from the eurozone have been blasted as foolish and unrealistic, the paper said, - "but who knows for how long."

Greece won't repay the aid it received from the euro stabilization fund, Poland's Dziennik Gazeta Prawna wrote. "The country has proven that living beyond one's means is worthwhile - if there is a problem, others will pay the bill." Controlled bankruptcy would make more sense, the paper suggested: it would be just punishment for Greece's excessive debt and its scandalous budget discipline.

The Financial Times pointed out what it sees as being at the root of the matter: political problems. The British paper commented that the eurozone is politically incapable of handling a crisis that has become contagious and could potentially cause huge collateral damage. "You cannot run a monetary union with the likes of Mr. Sokrates, or with finance ministers who spread rumors about a breakup," the paper wrote. "Europe's political elites are afraid to tell a truth that economic historians have known forever: that a monetary union without a political union is simply not viable." This is not a debt crisis, the paper concluded: it s a political crisis.

Dernières Nouvelles d'Alsace lamented what it regards as the EU's slow demise. May 9th is Europe Day, and it was meant to be a joyful day filled with optimism, star-spangled and blue like the EU flag, the paper wrote - but it is not. "Honestly, who wants to celebrate Europe's virtues if it is, time and again, portrayed as the source of all evils?" the paper wrote. For a long time, the French paper said, the European project was synonymous with progress, supported by a broad majority of the French. "Now it is presented as a utopia one must do away with."

Compiled by Dagmar Breitenbach
Editor: Nicole Goebel