Behind the Hype over Greece


Since the beginning of the year 2010, the Anglo-American and also continental European mainstream media have been indulging in the financial and fiscal woes of Greece. If we believe the media, Greece is tottering at the brink of state bankruptcy and might detonate the European Monetary Union (EMU). Moreover, we are told, not only Greece but the whole southern belt of the Eurozone – Portugal, Spain and Italy – has become a financial and fiscal disaster area. One should add however that the hype over Greece is accompanied by massive currency speculation against the euro and by a massive speculation drive with respect to “credit default swaps” (CDS). The “global players” of international finance are back to the very speculation practices which caused the 2007/08 financial crisis. If there’s one sensible conclusion from the “Greek affair”: States must finally get tough on financial regulation. This is as important for their credibility as fiscal discipline.