Said referendum being, of course, whether they should pay the bills that their government has been racking up for some time. The Daily Telegraph explains the situation that would arise from a No vote:
…it’s game over for Greece’s membership of the single currency. The country’s banks don’t have enough money to last for much longer, and there is little reason why the European Central Bank would wish to extend them billions more if it is snubbed by voters. Either the banks would have to stay shut, which means that the country will run out of food and essentials as it becomes impossible to pay for imports, or depositors would have to be bailed in, wiping out a large chunk of their wealth but recapitalising financial institutions.
The only other alternative would be for the Greek state to introduce IOUs and then a new physical currency, while re-denominating all Greek bank accounts into drachmas. The national debt, which is owed in euros, would explicitly be repudiated, triggering a major crisis and inflicting vast losses on the European Central Bank, IMF and other creditors. The new drachmas would, of course, plummet in value, and it would be hard to avoid widespread chaos and hyperinflation if the government is forced to crank up the printing presses to pay for its bills.
Continue reading Greece votes no on referendum, Euro, probably EU membership, long-term stability as a nation-state…
Basically, it goes like this: the EU bails out Cypriot banks to the tune of 10 billion euros, in partial exchange for a 6.75% to 9.9% raid on Cypriot personal accounts (which is supposed to net about 5.8 billion euros in revenue), collectable probably now Tuesday*. See also here, here, and here.
Naturally, the subjects of Cyprus (I can’t in either good conscience or grammar call them “citizens”) are freaking out and trying to yank what money they can out of the banks; many wonder if the rest of the EU is going to follow suit. Should the average European be worried? Well, Walter Russell Mead (who is not entirely sympathetic to the Cypriots, given that they’ve been operating as money launderers to various unsavory Russians for some time) notes this: Continue reading Cyprus to raid private bank deposits, on orders from European Union.
What? It’s a legitimate question.
…And so is the one in the tweet.
Great Britain is looking over with some alarm at the rest of Europe again. They probably won’t have to, you know, set those charges off any time soon – but, you know. Be prepared, and all that.
…What? Yeah, suuuuuuuuure they don’t have any explosive charges there. After all, they are one big, happy fleet.
Some faceless (well, he has a name, but he’s effectively faceless anyway) Eurocrat, on why bottled water companies in the EU may not indicate on their product that ‘regular consumption of significant amounts of water can reduce the risk of development of dehydration’:
Prof Brian Ratcliffe, spokesman for the Nutrition Society, said dehydration was usually caused by a clinical condition and that one could remain adequately hydrated without drinking water.
Those wacky Europeans. God love ’em, but they’re weird. Then again, they all seem convinced over on the mainland that this EU thing is the only bulwark against them playing Let’s All Set Fire To Each Other, Repeatedly, Until The Americans Come Over To Save Our Burning Rears again, so I suppose that this is an improvement.
(Via somebody or other.)