Peter Dorman — The Euro, From Cash to Kesh

So on closer analysis the German position is as absurd as it looks on the surface. It is a weak play for intellectual legitimacy. What it’s really about, of course, is the fact that Greek maturities are spread out over the coming decades, and that restructuring their terms will postpone the reality of default to future politicians. A writedown is immediate and pins the loss on the folks currently in control. And you can’t have that in a currency union, can you?

This seems to be the case from German polling. German "taxpayers" (read the electorate) don't want Greece's unpayable debt dumped on them. Any kind of debt write-down would create that impression, which voters would most likely remember at the time of the next election.

Politics in European countries is becoming fractious, and politicians are getting nervous over growing uncertainty.

Econospeak
The Euro, From Cash to Kesh
Peter Dorman | Professor of Political Economy, The Evergreen State College