Photo: Piazza Del Popolo on flickr
The message from the Eurozone today is clear — if you rack up massive amounts of debt which you can’t pay, don’t even think about trying to get your financial house in order.Riot instead. Throw firebombs at police, and use your violence to scare neighbouring countries into paying your bills. They’ll do it in the name of stability.
That’s the victory Greece just won and if it was hard to make significant austerity measures happen there before, now it just seems stupid for Greece to do so. Persuading eurozone nations to bail you out is an easier proposition than cooling mass riots which will erupt if tough austerity measures are announced.
If it stopped here it wouldn’t be so bad, but don’t think other Eurozone populations haven’t notice the victory of Greek rioters.
Pushing through fiscal discipline just became a lot harder in nations such as Spain or Portugal, in addition to Greece. Expect more riots and less fiscal responsibility, because riots have just been rewarded. Right now it seems like a necessary evil, but the day heated anti-bailout riots happen in nations such as Germany or France is the day intra-European politics becomes extremely ugly.
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