...we all know that the EU's statistical scrutiny [of Greece] failed. More pertinent is the role that Brussels played in its failure. Upon joining the euro, the Greek government was like a child in a candy store. Credit was available to it at 4% interest rates, when previously it had paid as much as 18%. But which irresponsible adult gave Athens the keys to the store?

Back in January 1999 when the euro was born, Greece was not able to join because it didn't meet the euro zone's budgetary and inflationary standards. By June 2000 though, Greece was admitted to the club—despite press reports throughout that year that Greece had qualified by "limbo dancing," or making great efforts to meet euro-zone standards only to let things slide as soon as it was past the barrier.

The European Central Bank similarly expressed its concern prior to Greece's euro entry, noting that its debt levels were far above the prescribed limit. A respected Bonn University economics professor, Jürgen von Hagen, told the New York Times that at the time, there were already "clear indications that the Greeks were forging the data."

So where was the European Commission during this time?....

Read it all (emphasis mine).

Filed under: * Culture-Watch • History • Psychology • * Economics, Politics • Economy • Credit Markets • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • * International News & Commentary • Europe • Greece

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