Jerermy Warner: After the melodrama and comic flourishes, the eurozone faces its grisly climax
WE have reached the final act of the revenge tragedy that is the eurozone crisis. We’ve had the melodrama, the comic flourishes, the lunatic interludes – but there’s still no telling how it’s all going to end. If it remains true to the genre, it will be in an orgy of murder and violence.
The plot so far? We know that the single currency as presently constituted only really works in benign economic conditions, and so was very probably doomed from the outset. We know, too, that the leading players won’t yet accept that fact, remaining locked in a state of denial. And we also know that everything they’ve tried to correct the problem hasn’t worked. On the contrary, it only seems to have made matters worse.
That Europe’s leaders might be adopting the wrong policies doesn’t seem to have occurred to them. But then, the euro appears constitutionally incapable of allowing them to pursue the correct ones. The virtuous nations of the single currency’s core want only to impose self-defeating penury on the wicked of the periphery.