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The European economy is a stark drama that continues to unfold in real-time, as Germany and Greece in particular try to come to terms with how to best move forward on the European project. In fact, negotiations between Greece and the European Union may turn out to be a turning-point for the Continent. Consider that in February, 2015, Greek finance minister Yanis Varoufakis wrote in The Guardian newspaper that, “In 2008, capitalism had its second global spasm. The financial crisis set off a chain reaction that pushed Europe into a downward spiral that continues to this day. Europe’s present situation is not merely a threat for workers, for the dispossessed, for the bankers, for social classes or, indeed, nations. No, Europe’s current posture poses a threat to civilization as we know it.”
Regardless of one’s views on the best medicine for Europe’s ills, these are strong words that illustrate just how vexing the current European dilemma is. By late June, 2015, Greek banks had been shut down to avoid a meltdown and bailout talks with European creditors seemed frozen. Greek default and withdrawal from the euro seemed a real possibility. By mid-July, 2015, an accord of sorts seemed to have been reached, but with austerity for Greece as the theme. In any case, one wonders about the future of the European project going forward.