A Monday morning EU myth

One comfortable myth of the Out side is that all EU decisions are made by grey, unaccountable bureaucrats. This myth allows Out campaigners unlimited thoughtless railing.

But Eurozone ministers are not unaccountable bureaucrats. They have electorates too.

Directly and indirectly, those countries will have huge liabilities if Greece defaults – Barclays suggest Germany €94bn, France €72bn, The Netherlands €20bn. And who thinks Italy can afford a hit of €63bn, or Spain €48bn?

Some governments will strongly oppose debt write-offs for political reasons – such as Spain and Ireland. If they have been taking the pain, why shouldn’t Greece? If Greece is forgiven debt, why didn’t their governments achieve it? Finland opposes debt forgiveness in principle, while Slovakia points out that it is a poorer country than Greece, so why should it have to stump up at all? (Hint: read the Eurozone rules before you sign up.)

In all eurozone countries, ministers are aware of their electorates’ disillusion. France and The Netherlands already have established anti-euro parties ready to pounce on any weakness – even Germany has the AfD now.

So which will play better with those voters and those governments – huge write-offs now, or lending a bit more?