Croatian and EU flags in St. Mark square in Zagreb, Croatia, May 24, 2010. Croatia is next in line to join the EU, but with the plunge in the euro's value, many worry that the EU's planned enlargement may have lost its appeal.
AP Photo

"Lessons from the Greek Bailout"

Op-Ed, The Huffington Post

May 13, 2010

Author: Azeem Ibrahim, Former Research Fellow, International Security Program, 2008–2010

Belfer Center Programs or Projects: International Security

"One thing which history shows that the USA got right, as it evolved, was in waiting until its respective states became parts of the union before trying to ensure that they all shared the US' currency. It is a lesson that Europe is now learning the hard way.

The lesson is being learned with the harshest results by the frugal German taxpayer, who has just paid $140 billion towards a bailout for Greece, a country which has serially spent much more than it has brought in, lied to the EU about it, and looks incapable of change. Worse — this behavior is affecting the value of the euro in the pocket of those very German voters whose money is already being spent bailing Greece out. The truth is that membership of the euro means that Germany's bailout hurts, but is needed to protect the value of its currency...."

Continue reading: http://www.huffingtonpost.com/azeem-ibrahim/lessons-from-the-greek-ba_b_574723.html

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