Here in Greece, a cycle is ending, and the country is returning to political normality and stability. On Sunday, it will hold national elections—its first since exiting a bailout regime last year—in which Kyriakos Mitsotakis’s center-right New Democracy party, a pillar of Greece’s pre-bailout establishment, is expected to defeat the left-wing populist Syriza party, led by Prime Minister Alexis Tsipras. Syriza came to power in 2015 demanding an end to the crippling austerity Greece was forced to undertake as a condition of its bailout, but ended up having to implement it anyway—at the behest of the European Union and the country’s other creditors. [...]
In Italy, for instance, few days go by without Matteo Salvini, the country’s right-wing populist interior minister and the man widely seen as a leader-in-waiting, saying that Italy doesn’t want to “meet the same fate as Greece.” In Salvini’s rhetoric, winding up like Greece means ceding national sovereignty to the baddies of the European Union, who in turn would impose an emasculating austerity regime on Italy. His party has long flirted with the idea of exiting the euro, or even creating temporary IOUs as a parallel currency—a notion that fires up the base, but is not likely to happen because it’s illegal and would cause the single currency to collapse. [...]
Europe’s handling of the Greek debt crisis also haunted talks last month about creating a common European budget for handling moments of extreme financial stress, something French President Emmanuel Macron has been pushing for, but which Germany opposes. That’s because in much of the German political and popular imagination, Greece has been the ultimate example of a spendthrift country whose soaring debts got it into trouble and that required the thrifty creditor Germany to solve its problems; never mind that for years before the crisis, Germany benefited from Greece buying German goods with money borrowed from German banks.
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