There is an excellent letter in the FT today on the matter of Greece that echoes what I have been saying for a few weeks now.
When most commentators look at the coming chaos they think of the financial and the economic consequences of Grexit. They do not focus on the social and geopolitical aspects of there being a "failed nation state in Europe's underbelly" says letter writer Nanda Menon.
"It is impossible to contain the political and security related consequences of a Grexit unless Greece and its citizens are also deprived of their essential rights under the treaties of the European Union and its associated protocols, annexes and declarations such as the free movement of people, the Schengen acquis, entitlement to social benefits on internal migration and so on."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Let's not forget that Greece's islands are "just a raft ride" away from the civil wars of the Levant and that there is no reason why all 11 million Greeks still living in the EU if not using the euro would not be within their rights to appear in Berlin and London demanding jobs and/or benefits (something that would make it tricky for Merkel to "hold out on David Cameron's requests for a wider suspension of benefits for EU migrants").
Tsipras is betting on getting a deal. Look at it like this and you will see that his chances aren't as bad as they seem on first glance.
-
Beating inflation takes more luck than skill – but are we about to get lucky?Opinion The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank of England may be about to get lucky.
-
Rishi Sunak can’t fix all our problems – so why try?Opinion Rishi Sunak’s Spring Statement is an attempt to plaster over problems the chancellor can’t fix. So should he even bother trying, asks Merryn Somerset Webb?
-
Young people are becoming a scarce resource – we should value them more highlyOpinion In the last two years adults have been bizarrely unkind to children and young people. That doesn’t bode well for the future, says Merryn Somerset Webb.
-
Ask for a pay rise – everyone else isOpinion As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why you should do that too.
-
Why central banks should stick to controlling inflationOpinion The world’s central bankers are stepping out of their traditional roles and becoming much more political. That’s a mistake, says Merryn Somerset Webb.
-
How St Ives became St Tropez as the recovery drives prices sky highOpinion Merryn Somerset Webb finds herself at the epicentre of Britain’s V-shaped recovery as pent-up demand flows straight into Cornwall’s restaurants and beaches.
-
The real problem of Universal Basic Income (UBI)Merryn's Blog April employment numbers showed 75 per cent fewer people in the US returned to employment compared to expectations. Merryn Somerset-Webb explains how excessive government support is causing a shortage of labour.
-
Why an ageing population is not necessarily the disaster many people think it isOpinion We’ve got used to the idea that an ageing population is a bad thing. But that’s not necessarily true, says Merryn Somerset Webb.
