Euro-solidarity can stop euro-cuts
On hearing the first declarations from the ministers in Greece’s new Syriza-led government, elected on 25 January, the invisible hand of the markets reacted. The stock market lost 8%. The interest rate on Greek bonds went up. Some EU and IMF leaders sent harder messages about the need for compliance — Angela Merkel, Christine Lagarde — and some tried to be more conciliatory (Barack Obama, Francois Hollande, Matteo Renzi). Cristobal Montoro, finance minister in Spain’s right-wing government, was aghast that any government should be less compliant with Euro-austerity than his own. There could be...