Citing information from the Organization for Economic Cooperation and Development, the NY Times is reporting that,
... the median Greek retiree takes home 95.7 of his or her last salary, while the German pensioner gets only 43 percent. That is viewed as evidence that the Germans have taken painful cuts in their benefits to keep industry competitive and budget deficits under control, while the Greeks have not.
Don't expect things to be smoothed over any time soon, especially when we consider this ...
Relations between the two countries have taken a sour turn in recent weeks as German news media outlets accused the Greeks of corruption, tax evasion and falsifying their budget numbers to join the euro zone. Greek politicians in turn have asked for reparations for damage inflicted by Nazi occupiers during World War II.
With other European markets on the verge of collapse, and the U.S. ceding public policy to financial institutions, don't be surprised if some of the economic ugliness that gripped Old Europe in the past returns. Economic nationalism can turn into economic warfare very quickly.
I don't think I need to remind anyone how that can turn out.
- Mark
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