Last week, on the Jeff Randall show (Sky News), we discussed the looming Greek default but, more importantly, the question of why is Germany dithering. Toward the end of the interview I tried to make the point that Europe’s tratedy is that those with the power to redesign, and in so doing fix, the eurosystem stand to lose a great deal of bargaining power within the eurozone if they do so. Put succinctly, if they use their power (to fix the euro) they will be forfeiting their exorbitant power (within the Council of Europe) to dictate policy to the rest. Thus, they are not using it, with the result that the perfectly save-able eurosystem is crumbling all around us.
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