Europe cannot afford to rescue Greece

Commentary feature. The author argues that 'Greece will continue to receive support from several European Union funds. But financial aid from other EU countries or institutions that amounted, directly or indirectly, to a bail-out would violate EU treaties and undermine the foundations of Emu. Such principles do not allow for compromise. Once Greece was helped, the dam would be broken. A bail-out for the country that broke the rules would make it impossible to deny aid to others.

The question is whether EU monetary union can survive without a political union. The current crisis must be handled in such a way as to produce a positive answer. The viability of the whole framework – nothing less – is at stake.'

Website: Center for Financial Studies (CFS) http://www.ifk-cfs.de/

ESO: Background information: German press calls for tough line on Greece http://www.europeansources.info/record/german-press-calls-for-tough-line-on-greece/

ESO: Background information: Berlin looks to build Greek 'firewall' http://www.europeansources.info/record/berlin-looks-to-build-greek-firewall/

ESO: Background information: The political constraints of the eurozone http://www.europeansources.info/record/the-political-constraints-of-the-eurozone/

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