This video is interesting, but I find it opinionated, neo-liberal, US-centric and conclusion-driven. It raises more questions than it answers: if Greeks are not paying their taxes, why would raising those same taxes help anyone? Why should Germans and French pay the Greek debt, if not to repay loans to German and French banks? How can a government bribe its whole population with borrowed money, and who is lending that money? Isn't it irresponsible to lend to countries in those terms, and shouldn't the lenders lose that money? Why would these losses cause a default in foreign economies?
Also, most of its facts are messed up: the US subprime mortgage crisis did not cause the crisis via a Spanish real-state market collapse, it just tightened credit and ultimately deflated public banks (cajas de ahorro) which have hidden political spending for several decades, and which have cost billions in the last few years. This is well documented, just as a data point: Bankia was bailed out for $29B http://content.time.com/time/world/article/0,8599,2115950,00....
The problem with Government spending cuts mandated from the outside is that they all go to health and education, instead of cleaning up the layers of bottom-feeding politicians and friends which have occupied most public companies and which are devouring the economy. The Spanish competition regulator estimates the cost of corruption in about €48b: http://www.elconfidencial.com/empresas/2015-02-10/la-cnmc-ci... (in Spanish, I found no good source in English). I can imagine that in Greece the situation will probably be similar or worse, it would be nice to have credible figures. Meanwhile inequality soars in Spain, and the number of millionaires increases: http://www.theguardian.com/world/2013/oct/10/spanish-wealth-...http://elpais.com/elpais/2015/05/21/inenglish/1432203309_060...
Any analysis which doesn't take into account these factors is superficial and will never reach the true causes. A shared fiscal policy would make European policy less transparent and easier to manipulate by the elites, unless it was accompanied by deep reform in all European institutions, which is highly unlikely. Revising the role of the ECB is much more interesting IMHO.
Also, most of its facts are messed up: the US subprime mortgage crisis did not cause the crisis via a Spanish real-state market collapse, it just tightened credit and ultimately deflated public banks (cajas de ahorro) which have hidden political spending for several decades, and which have cost billions in the last few years. This is well documented, just as a data point: Bankia was bailed out for $29B http://content.time.com/time/world/article/0,8599,2115950,00....
The problem with Government spending cuts mandated from the outside is that they all go to health and education, instead of cleaning up the layers of bottom-feeding politicians and friends which have occupied most public companies and which are devouring the economy. The Spanish competition regulator estimates the cost of corruption in about €48b: http://www.elconfidencial.com/empresas/2015-02-10/la-cnmc-ci... (in Spanish, I found no good source in English). I can imagine that in Greece the situation will probably be similar or worse, it would be nice to have credible figures. Meanwhile inequality soars in Spain, and the number of millionaires increases: http://www.theguardian.com/world/2013/oct/10/spanish-wealth-... http://elpais.com/elpais/2015/05/21/inenglish/1432203309_060...
Any analysis which doesn't take into account these factors is superficial and will never reach the true causes. A shared fiscal policy would make European policy less transparent and easier to manipulate by the elites, unless it was accompanied by deep reform in all European institutions, which is highly unlikely. Revising the role of the ECB is much more interesting IMHO.