Krugman maintains that German politicians are not telling German voters about the risks. Let me give you a flavor:
And what if the Germans don’t wake up? In that case we can hope that the central bank takes a stand and declares that its proper role is to do all it can to safeguard Europe’s economy and democratic institutions — not to act as Germany’s debt collector.
I’m hoping for a compromise but fear that it will go to the wire. When two big countries play ‘chicken’, there’s a strong chance of causing serious damage and unintended consequences.
Perhaps Germany has pushed Greece too far, and it’s time for Germany to concede?