Analyzing the ongoing drama, tragedy or comedy about Greece, five observations stand out as the crucial ones among the smokes obscuring what actually is happening on the stage. The first one is that Greece has done extremely well out of its EU-membership.
Europe needs a new positive narrative to confront the plethora of serious internal and external challenges it faces. Otherwise, the entire European project as such may be at risk. This would be a historic mistake.
If invested with popular legitimacy, Europe's success will depend on balancing it with long-term focused meritocratic governance and avoiding capture by short-term and particular special interests. A middle Way between West and East is indeed necessary.
Americans must wonder how a faltering economy in Greece (population: approximately 11 million) can cause a rupture in the entire economic foundation of the eurozone, which is supported by a population of 332 million. Don't worry, we all ask ourselves this question from time to time.
As the end of 2011 neared, I looked at the Eurocrisis from a political perspective and concluded that the political system is incapable of solving the problem and probably will fail to do so. The markets will, sooner or later, figure this out.