In 2008 the historian, Mark Mazower, gave a lecture at Columbia University on Greek Ideals and the World Order in the Twentieth Century, charting the thinking of the Oxford Classicist and foreign office minister Alfred Zimmern.
Zimmern was forced to confront the reality of the international political order in the wake of the Boer War, when the British Empire showed the first alarming signs of disintegration and the mercantilist ‘scramble for Africa’ was widely derided. His response was to turn to the concept of the commonwealth as pioneered by Ancient Athens – to allow for the supra-national body with teeth promoted by Woodrow Wilson or the world government of HG Wells’ imagination would be to paper over the cracks of ethnic differences – only by adopting the spirit of commonwealth would nations be able to put the First World War behind them.
Just as intellectuals in the twentieth century had to face the unfortunate truth that the Germans, pioneers through Kant of intellectual ethics and romanticism in place of inhuman liberal enlightenment, had produced Hitler, Europe now faces a crisis of identity with Greece on the edge of not merely exiting the Euro but the EU.
The past three years, during which Greece has occupied ever greater amounts of time and effort, have been a disaster. Germany, thrust into a steering role which it has consciously shunned for the past fifty years, has become a symbol of priggishness to Greeks as ill-disciplined and tactless officials sought to sell austerity by hinting that those who could not pay their way were lazy, tax-dodging and ultimately feckless. Some Greeks, in turn, derided German leaders as Nazis. Governments in Greece and Italy collapsed after losing the confidence of Angela Merkel and Nicholas Sarkozy and a referendum in Greece on a bailout package was cancelled, giving an untrue impression of a democratic deficit (though Ireland is holding a referendum soon on a new fiscal treaty).
Greece may or may not now exit the Euro. Privatisation at a time of global deleveraging has failed to produce the hoped-for results, attempts to cut spending have made little headway and what political will existed behind pursuing austerity appears to be fast evaporating. Nonetheless, it would be foolish to pretend that the results will not be horrible. Greece’s major banks will collapse as depositors withdraw their remaining savings (banks were already 30% more under-resourced before €700m were withdrawn on Monday); the new currency will plummet, making debts formally unmanageable and default will follow.
Unlike Russia and Argentina, which were able to rely on an upsurge in the global climate and raw material stocks after defaults in the 1990s, Greece has few prospects for growth. To cut Greece out of the EU entirely, including access to the single market and cohesion policy expenditure would be to invite disaster. EU leaders should not underestimate the capacity of Europe to return to the place it was when the Coal and Steel Community was merely germinating in the mind of Jean Monnet. Abandoned, Greece is highly likely to drift towards extremism.
It is worth noting that the PIIGS which are the supposed cause of the crisis are not merely Mediterranean countries (with the exception of Ireland) as the casually racist insinuation has it. Rather, with the exception of Italy, they all became EU Members in the 1970s and 1980s and immediately set about pursuing growth by any means necessary. In 2004 the accession of ten former Soviet states benefitting from much lower labour costs and tax rates as part of the shock therapy liberalisation of their economies saw a flood of investment East, which the PIIGS could counteract only through access to credit – the same credit which in the case of Ireland and Portugal now exceeds 120% GDP. This comparative advantage and the redirection of EU Commission investment has sown mistrust, which will need to be repaired.
Britain’s financial markets are condemned for allowing the shorting of the Euro, Germany for failing to allow the auctioning of Eurobonds and France for either keeling over in the face of German pressure or for electing a dangerous left-wing loony, depending on the perception of the viewer. Europe is no longer attractive to its neighbours, who have been forced either to wait too long, partly because they see the EU as merely meddling in their internal politics without understanding the reasons why things are as they are. In Belarus, the dictatorship may be the antithesis of the people. In Ukraine, apathy is more widespread. Finally there is Hungary, partly disowned as an economic problem (since it lies outside of the EU) and partly offloaded onto the IMF, but with the EU specifying the political criteria of aid.
The idea of an elected European President is absurd. Presidents with few executive powers are common enough in Europe, but even a directly elected figure would struggle to represent such diverse interests and cultures. He would be either embarrassingly weak or disastrously strong. What is needed is rather for European leaders to work together with a sense of urgency and solidarity, before the resentments created by the Eurozone crisis are allowed to stiffen. Europe will have to reinvent itself. Unfortunately, there are no classicists in government and few Greeks working on that.



