Greeks bearing debts

The euro was a bad idea in 1999, and it's a disaster now.

I have a long memory, and a thin skin, and often lie awake at night, grinding my teeth, reliving the insults born by Tories in our wilderness decades. I suppose it's too much to expect an apology from the politicians who were pro-Euro hysterics at our general elections, until quite recently? People like, ooh I don't know, Chris Huhne?

If we get rid of sterling and adopt the euro, we will also get rid of sterling crises and sterling overvaluations. This will give us a real control over our economic environment. (Chris Huhne, 2004).

Substitute "Greek drachma" for "Sterling", and that sentence reads really well now, doesn't it Chris? (Hat tip to Dan Hannan for a list of many similar, delicious-with-hindsight comments).

Setting Huhne's points aside, it's worth recalling the argument repeatedly made by those of us who didn't want to join the euro, because -- with respect to the Greek tragedy currently unfolding -- it was all so entirely predictable.

We said that a monetary union couldn't work, because a single interest rate for a continent of such disparate economies could not be suited to them all. Since the interest rate was likely to be set low to suit the productive Germans, it would spell inflationary doom for countries like Ireland and Greece.

No-one ever had an answer to the single interest rate dilemma. Part of the reason it was so compelling to most Conservatives (Ken Clarke, as ever, an honourable exception) was that we had lived through two examples where UK interest rates led to devastating domestic outcomes. The ERM fiasco of Black Wednesday is well-rehearsed. Less commented on is that we had all lived through what happened in the north of the UK in the 1980s, when an interest rate was necessarily set to control inflation in the south. If it's hard enough to make one rate suitable for a single state, it beggars belief that anyone imagined that a single rate could suit economies stretching from Dublin to Athens via Berlin.

As of course, it could not. The banking crises only exacerbated what was already evident: some countries had embarked on uncontrolled (by the ECB's central rate) inflationary bubbles of debt-funded spending. When the credit dried up, the crises set in. Now Greek government debt is worthless, and its people are rioting against the austerity measures imposed on them by the IMF, and the obvious route open to a country in such a terrible situation -- devalue your currency and hope for growth in exports -- is shut off from them, while they remain locked into the euro.

William Hague was derided in 2001 for likening the eurozone to being locked into a burning building with no exits. With apologies to the late, great Bob Monkhouse: they laughed when we said we didn't want to join the euro. They're not laughing now.

Not that being right in 2001 is any cause for cheer ten years later. In the morose phraseology of Douglas Carswell MP, we may have avoided the trap of monetary union, but we appear to have signed up for the accompanying debt union regardless. Still: leaving the euro must be Greece's least worst option. I know that exposure to Greek debt is worldwide, but (I'm sure an economist will tell me otherwise) would suffering that exposure be worse than throwing more good money after bad? Until which point?

Fans of the euro used to insist that it wouldn't, it couldn't be allowed to fail. I wonder how much of a soaraway success it feels to the people of Athens, today?

Graeme Archer is the 2011 Orwell Prize winner for blogging.

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It's Gary Lineker 1, the Sun 0

The football hero has found himself at the heart of a Twitter storm over the refugee children debate.

The Mole wonders what sort of topsy-turvy universe we now live in where Gary Lineker is suddenly being called a “political activist” by a Conservative MP? Our favourite big-eared football pundit has found himself in a war of words with the Sun newspaper after wading into the controversy over the age of the refugee children granted entry into Britain from Calais.

Pictures published earlier this week in the right-wing press prompted speculation over the migrants' “true age”, and a Tory MP even went as far as suggesting that these children should have their age verified by dental X-rays. All of which leaves your poor Mole with a deeply furrowed brow. But luckily the British Dental Association was on hand to condemn the idea as unethical, inaccurate and inappropriate. Phew. Thank God for dentists.

Back to old Big Ears, sorry, Saint Gary, who on Wednesday tweeted his outrage over the Murdoch-owned newspaper’s scaremongering coverage of the story. He smacked down the ex-English Defence League leader, Tommy Robinson, in a single tweet, calling him a “racist idiot”, and went on to defend his right to express his opinions freely on his feed.

The Sun hit back in traditional form, calling for Lineker to be ousted from his job as host of the BBC’s Match of the Day. The headline they chose? “Out on his ears”, of course, referring to the sporting hero’s most notable assets. In the article, the tabloid lays into Lineker, branding him a “leftie luvvie” and “jug-eared”. The article attacked him for describing those querying the age of the young migrants as “hideously racist” and suggested he had breached BBC guidelines on impartiality.

All of which has prompted calls for a boycott of the Sun and an outpouring of support for Lineker on Twitter. His fellow football hero Stan Collymore waded in, tweeting that he was on “Team Lineker”. Leading the charge against the Murdoch-owned title was the close ally of Labour leader Jeremy Corbyn and former Channel 4 News economics editor, Paul Mason, who tweeted:

Lineker, who is not accustomed to finding himself at the centre of such highly politicised arguments on social media, responded with typical good humour, saying he had received a bit of a “spanking”.

All of which leaves the Mole with renewed respect for Lineker and an uncharacteristic desire to watch this weekend’s Match of the Day to see if any trace of his new activist persona might surface.


I'm a mole, innit.