Greece: A mess with consequences

Cambridge

AS Greece teeters on the edge of an abyss, the world collectively holds its breath. If Greece is expelled from the eurozone after its "no" vote on needed reforms, the ripple effect will reach far and beyond. The crisis comes at an especially bad time for a wobbly global economy. If there is a way forward, the European Union would have to ignore the "no" vote in the Sunday referendum.

The denouement may be reached this week, but the crisis has been a long-time coming. Greece has had a dysfunctional political economy for years and should not have joined the euro with its obligations for controlled deficits and debt. After it joined, borrowing was cheap and the government borrowed rather than cut generous spending or increase taxes on a population that did not like to pay their legal obligations.