The solution to the Greek – Euro Group problem is so obvious that everyone has missed it.
The Greek government said to the EU: a democratic vote of all the people – and whatever they decide, that is the will of the Greek people. And the EU must respect the democratic will of the Greek people.
So far, so good, but only one side of that coin. Let’s look at the other side.
The fair democratic response by the EU, in turn, is to say to Greece, “right.” The EU will also have a democratic vote of all the people in their countries – and whatever they decide, that is the will of the respective Euro Group peoples. And you, Greece, must equally respect the democratic will of all of the EU countries’ peoples.
What the Greek government wants as the democratic will of the Greek people is simple to state:
1. We continue welfare to the Greek people at the customary level even though we don’t have the money to pay for it.
2. We have a Keynes stimulus program – to get the Greek economy going again, even though we don’t have the money to pay for it.
3. Institutions, you give us the money for both things.
4. We’ll figure out by ourselves what to do to accomplish this and if, as, and when we accomplish it we will repay you; and write off the old loans so we have no burdens doing it.
What the Euro Group countries should want as the democratic will of their respective peoples is also simple to state:
1. Citizens – do you want to pay for what the Greek people want?
a) Do you want it as a loan; or is it a “gift” to them?
2. Do you want them to determine how to do it?
3. Or, do you want protection to make sure it happens right?
Each Euro Group member decides what they want to vote on.
An American suggestion – from our revolutionary days – it should deal with the democratic ideal of “No Taxation Without Representation.”
So, if the democratic will of the people of, e.g., Spain is “no”; then the will of the Spanish people will prevail and the Spain will not contribute to any further loan or gift program to Greece.
So, if the democratic will of the people of, e.g., Germany is “yes”: then the will of the German people will also prevail and Germany will contribut to further loan or gift program to Greece.
What’s sauce for the goose; is sauce for the gander.