The Euro Does Not Have A Problem… It Is The Problem

The Euro Does Not Have A Problem… It Is The Problem
There will be a temptation to gloat over the Greek crisis over the next week and a queue of people waiting to say ‘I told you so’. Both would be unwise.
Whether Greece exits the eurozone or not (and it is an increasingly absurd charade), there remain a number of uncomfortable truths that the rest of the countries of Europe, whether in the eurozone, the EU or neither will have to confront. The first is that Greece is a failing state, something that will have implications far beyond the merely financial. Long before the financial crisis hits the global economy in 2008-09, Greece was in trouble.
The combination of structural economic weakness and high structural deficits were compounded by a culture where tax evasion and corruption are both widespread and, to a large extent, acceptable.
In the six years from 2004, Greek output increased in nominal terms by 40 per cent, while government spending rose by 87 per cent and tax revenues rose by a mere 31 per cent.

This post was published at Zero Hedge on 06/21/2015.