I'll do my best.
First off the EEC. A pure trading block. In the same way a shop is not at risk from potential customers, admitting countries with poor credit history is not itself an issue. So let them in by all means... But perhaps don't let them pay on credit.
The EU is like two companies merging. You need to know them inside out.
Let's start with Greece's history of their currency... they've had many, many, MANY issues before. Almost to the degree one could say it was wilful ignorance to let them in, and a political decision rather than one based on economics... although no one seemed to view asking the citizens of the EU what they thought.
Regarding "open secret". Apart from the word "secret" I'd agree with you -
Link - with ministers loudly decrying the mess things were in with government owned industries. The only redeeming thing is that
everyone was sinning.
The key facet here is how there was a large difference in borrowing costs in the drachma compared to the Euro / Deuchmark. Greece had tried for years to join the EU to help stabilise the mess their economy had been in throughout the 80's
Link- so even if the numbers look OK, this should have been thoroughly audited how this turnaround happened.
Greece's financials had been falling apart since they left the Ottoman Empire. It was one catastrophe after another fuelled by mismanagement and tax evasion on a grand scale. They sort of managed by devaluing their currency from time to time and everyone knew they were a basket case - hence why borrowing costs were so high.
What was the EU to do after they wilfully believed what was an obvious lie?
If we pretend for a second that the EU is based on sound economics they'd remove them from the EU. If it is a political construct then this is an opportunity! Another reason for more EU institutions, oversight of countries and another small step to being a supra state. So no real surprises there then. And soon afterwards another treaty that was created to ensure that no voters need be bothered with their opinion.
Bookmarks