Fury Over a Greek Bailout

http://www.time.com/time/world/article/0,8599,1964443,00.html?artId=1964443?contType=article?chn=world

This article from Time (from Tuesday, 2/16) tells about anger on part of politicians and civilians in EU countries (especially Germany and France) about European leaders' pledge to help the Greek economy, which is suffering from a large budget deficit and debt. European leaders, though not happy about the necessity to help Greece out, recognize that it is necessary in order to protect the value of the euro. If one euro zone country faced a huge financial crisis, it would have a great impact on the rest of the countries that used the euro. It is likely that Germany and France, as euro zone members with the largest economies, will end of paying most of the bailout. German and French taxpayers, who will no doubt be affected by this monetary commitment, are very angry over this pledge to help Greece. Last year they saw their taxes help bailout national banks, and now they facing the idea of seeing their money go to a foreign government who many feel acted irresponsibly and recklessly, and are undeserving of assistance. A recent poll that 53% of Germans want Greece "tossed out of the euro zone if it can't resolve its deficit dilemma without outside funding." Also, 71% of surveyed Germans were opposed to German government aid to Greece. (There were no statistics on French sentiments, but it seems that public opinion is similar to that of Germany).

This is an interesting issue to look at, especially in relation to institutionalist theory. Institutionalists would suggest that the EU is beneficial to member countries because it allows them to work together for common benefit. The adoption of common currency certainly contributed to unity by linking their economic interests. (Liberal theorists would argue that this economic interdependency leads to peace). Realists would argue, however, that committing a country to such cooperation goes against that country's interests and is not rational. They would likely argue that it was not wise for Germany and France to become so involved in the institution of the EU that their economic well-being is now so dependent on that of Greece, thus necessitating the bailout and extra burden on those country's economies. Liberals and institutionalists would argue that in the long run benefits of being a part of the EU and the euro zone will outweigh detriments and contribute to long-term economic growth, cooperation, and peace. The European leaders seem to recognize the importance of assisting Greece during this crisis, but the majority of private citizens seem to hold the idea "it's not my responsibility" and are angry enough to want Greece "tossed out" of the euro zone. It seems to me that they are all for cooperation when it benefits them, but they are largely unwilling to sacrifice in the short-run for benefit in the long-run. (I see the issue of whether Greece "deserves" the bailout as a separate issue). I think whether one subscribes to institutionalist or realist theory on this issue depends on whether they think long-term advantages outweigh the disadvantages of participation and cooperation in an international institution.