Jean-Claude Trichet, head of the ECB, has been blamed in part for the disastrous drop in the euro and the spread of the Eurozone credit crisis which began in Greece. He should have gotten on his bully pulpit long ago, his critics say, and rallied the stronger nations in Europe and the IMF to punish nations which avoided austerity measures in favor of entitlement programs and deficits.
Now, Trichet has begun to push the pendulum in the other direction.
He told the Economic and Monetary Affairs Committee of the European Parliament that nations that did not meet their budget and debt obligations should be severely punished.
A wider spectrum of financial sanctions needs to be considered, along with non-financial and procedural sanctions, such as more stringent reporting requirements or even a limitation or suspension of voting rights.
Put another way, Germany will keep its voting rights. Greece will not. The average Greek citizen will strike over that decision just the same as he will when he loses his exorbitant salary and pension.
Douglas A. McIntyre
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