European unity is at stake if a Greek debt deal isn’t reached

Commentary feature. The emphatic rejection of disastrous austerity policies by the newly elected Greek government has caused consternation in eurozone capitals. Germany has been particularly strong in dismissing Greek pleas for a renegotiation of its debt and has warned of an impending fallout should Greece persist in their demands.

But rejecting Greek proposals for restructuring its unpayable debt out of hand would be a mistake. It would have costly consequences for Europe and perhaps the world, while causing mayhem in Greece. Not only could this spell the beginning of the end of the common currency, but it would put in question the whole project of a unified Europe.

ESO: Background information: Tsipras defies EU by ruling out bailout extension http://www.europeansources.info/record/tsipras-defies-eu-by-ruling-out-bailout-extension/

ESO: Background information: Extraordinary Eurogroup meeting on Greece on Feb. 11 http://www.europeansources.info/record/extraordinary-eurogroup-meeting-on-greece-on-feb-11/

ESO: Key source: The Greek Debt Crisis http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

ESO: Background information: Greece alone cannot convince Europe to pursue a different economic course http://www.europeansources.info/record/greece-alone-cannot-convince-europe-to-pursue-a-different-economic-course/

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