Once Germany was Greece
The outgoing Greece finance minister Yanis Varourfakis said that the agreement between the EU and the Greece government is a "new Versailles treaty".
My first day at economics class was about political economy, my teacher told that the early subject was not economics it was political economics.Later the two subjects were separated. Whether it is together or separate ,it is always influencing each other.
The raise of Germany is not after the fall of the Berlin wall, it started after the Versailles treaty .This treaty was signed in a train between Germany and allied forces, the treaty forced Germany to pay heavily to certain countries. The allied power wanted Germany a weak country in Europe,during that time economist John Keynes, predicted that the treaty was too harsh and counter-productive.
This economic situation was the reason behind the rise of Hitler, we know that Hitler killed Jews and started the II world war but he was the person who changed the German economy and political climate. He also freed the country from the political and economic domination of the allied power. Hitler was able to do this because of the productive and technology advancement of Germany,he proved that it is very dangerous to push one country in a corner, it will bounce back hard both economically and politically.
This was true to some extent in the case of Greece, it was almost bounced back both on economic and political front, but there problems were deep rooted and they finding hard to live. The major problem for them is the euro currency, the concept of a uniform currency is to bring equality in EU countries but inequality is prevailing in Europe. Practically speaking the fiscal and monetary policies of each and every country is different but the currency is same, this leads to crises driven economy in Europe.
The economic problems in Greece lead to the winning of the referendum but the strong government is unwilling to take the decision to come out of EU. They have to start from the beginning and also it would be a gamble on the citizens of Greece. Greece have nothing to lose but this time the change will shape the whole European economy, it could also bring down the concept of EU in long run. It is not a Berlin wall to fall in one day.
My first day at economics class was about political economy, my teacher told that the early subject was not economics it was political economics.Later the two subjects were separated. Whether it is together or separate ,it is always influencing each other.
The raise of Germany is not after the fall of the Berlin wall, it started after the Versailles treaty .This treaty was signed in a train between Germany and allied forces, the treaty forced Germany to pay heavily to certain countries. The allied power wanted Germany a weak country in Europe,during that time economist John Keynes, predicted that the treaty was too harsh and counter-productive.
This economic situation was the reason behind the rise of Hitler, we know that Hitler killed Jews and started the II world war but he was the person who changed the German economy and political climate. He also freed the country from the political and economic domination of the allied power. Hitler was able to do this because of the productive and technology advancement of Germany,he proved that it is very dangerous to push one country in a corner, it will bounce back hard both economically and politically.
This was true to some extent in the case of Greece, it was almost bounced back both on economic and political front, but there problems were deep rooted and they finding hard to live. The major problem for them is the euro currency, the concept of a uniform currency is to bring equality in EU countries but inequality is prevailing in Europe. Practically speaking the fiscal and monetary policies of each and every country is different but the currency is same, this leads to crises driven economy in Europe.
The economic problems in Greece lead to the winning of the referendum but the strong government is unwilling to take the decision to come out of EU. They have to start from the beginning and also it would be a gamble on the citizens of Greece. Greece have nothing to lose but this time the change will shape the whole European economy, it could also bring down the concept of EU in long run. It is not a Berlin wall to fall in one day.
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