Paul Krugman, perceptive as always:
Just a quick note: one thing I don’t think has been sufficiently emphasized as we stare a euro disaster in the face is the amount of damage this will do to the overall European political landscape. Across most of the periphery, both sides of the usual political divide have been roped into the policies of austerity and internal devaluation — sometimes in governments of national unity, sometimes with normal party rule but with both parties following much the same line.
So if the policies fail disastrously, which is getting close to a certainty, the effect is to discredit the entire political center, leaving radicals right and left as the only people who aren’t tainted.
It’s hard to know how this ends. But Europe a few years now may be a very different place from the nice alliance of democratic nations we all know and love.
(via New York Times Blogs)
Well, it hasn’t been sufficiently emphasized, but it was emphasized here.
Update: link fixed, thanks Fred.
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