The tragic Greek sideshow

But if Greece is now a sideshow, it is a tragic one. Under the burden of debt and austerity policies, the Greek economy won’t recover for years. Some of the reforms imposed on Athens by the rest of Europe will force spending cuts that were inevitable and will be beneficial in the long term, such as the job cuts in Greece’s bloated government. But what Greece really needs are supply-side reforms that will make it easier to form new businesses, attract new investment, and keep Greek young people from fleeing the country.

Most striking in this deal is the damage to Greek self-government. The EU’s price for this bailout were assurances from Greece’s two biggest parties—Pasok on the center-left and New Democracy on the center-right—that they maintain current policies after elections this spring. Party leaders swallowed that pill to get the bailout, but Greek voters are understandably dismayed.

This tension—between democracy and sovereignty on the one hand and technocracy and “solidarity” on the other—has long been at the heart of Europe’s unity project. Europe’s solution for Greece has been to lurch even further in the direction of central control at the expense of local democracy. As so often is true in Europe, what goes by the name solidarity is really the self-interest of the strongest countries.