Yesterday Italy ended up in real trouble. Some said its economy is dead other meant that it still has a chance. After all it a country based on knowledge and it has significant assets to back it debt. But it seems like this was the straw that broke the camel's back. There is talk today on Huffington Post of a two-speed Europe solution. There is talk about a budget czar for the Eurozone in the Financial Times.
A budget czar that takes control over the budgets of member states would mean that it is clear that they can’t do this on their own. Greece, Italy, Spain, and Portugal have failed to match expenses with income and can’t sustain welfare states on the same level as states in northern Europe. We have technocracy delegitimizing democracy in such states and would need a panel of judges to decide which countries are in and which are out.
Nicolas Sarkozy has been advocating for a two speed Europe whereas Angela Merkel has spoken for a more homogenous variety. Merkel is of course right as far as the EU motto is concerned but if technocracy with economic steering, a Eurozone economic government, will make countries like Greece balk at this prospect, they will have to split the Eurozone somehow. A solution with debt redemption over 20-25 years via a fund is a more probable proposition which is also discussed in the Financial Times today.
So, what people are beginning to talk about is that democracy does not work everywhere. Still you have politicians who stand tall and say they wish democracy for Libya’s people soon, when there are problems in southern Europe already. The question today is whether or not southern Europe will accept technocracy or if they will cut themselves loose and stay democracies. Greece is an interesting example because 70% poll favorably for the Euro at the same time as they poll 60% against the bail-out from the Eurozone.