The Greek debt crisis appears to be coming to a head and I am happy to report that I may have hit upon a solution to the problem by recalling the events that took place in Greece on this date 178 years ago. Let's install Angela Merkel as Queen of Greece. Now, don't quit on me dear reader, for as crazy as it sounds, the idea is not without precedent. Read on.

The dream of a United Europe is not a new one and in the centuries before the European Union was established through diplomatic means, most of those dreams involved conquest and slaughter.  Caesar, Charlemagne and Napoleon are famous examples of rulers who managed to bring large swaths of the continent under their dominion and each left his stamp upon the laws, customs and borders of the Europe we know today. A less well known conqueror was Suleiman the Magnificent, who as leader of the Ottoman Turks subdued large portions of central and southeastern Europe before finally being turned back at the gates of Vienna in 1529.  The Ottomans ruled their vast European conquests for nearly three centuries before discontent in an impoverished corner of the empire threatened the unity of the whole. That sun-dappled center of discontent was Greece. With me so far?

The Greeks undertook a series of revolts against their Ottoman masters, beginning in 1821, and after several years of civil war, Britain, France and Russia intervened on behalf of the embattled Greeks (did I hear someone say "bailout"?). The allies sent a naval task force to the eastern Mediterranean, where it intercepted and destroyed the Ottoman fleet at the Battle of Navarino in 1827. After a few more years of fighting, the allies succeeded in securing Greek independence and they set about organizing a government.

Here's where it gets interesting:

After agreeing to form an independent Greek state, the three allied powers, without consulting the Greeks, offered the Hellenic throne to Bavarian Prince Otto of Wittelsbach, while also agreeing to guarantee a loan of 60,000,000 francs and 2.4 million pounds to the new monarch (Did someone say "loan guarantee"?). The protocol agreeing to the arrangement was signed on this date in 1832, and Otto ruled as an absolute monarch for 11 years before yielding to pressure to form a constitutional monarchy in 1843.  He was eventually deposed as king in 1862. I'm not sure if the money was ever paid back.

After dithering for weeks, European officials are also yielding to pressure from the markets and they are hurriedly moving to prevent the crisis from spreading by approving a joint European Union/International Monetary Fund rescue package. As part of that process, the Greek parliament voted to approve tough austerity measures yesterday, while huge crowds of protestors, unwilling or unable to acknowledge that their nation is virtually bankrupt, swirled outside. Attention now turns to Germany, as legislators there vote today on the EU/IMF bailout, a vote that will be closely monitored by investors. German approval is crucial to efforts to contain the crisis within Greek national borders, yet there are abundant signs that German citizens, much like their American counterparts, are weary of bailouts, whether deemed necessary or not. The market has been jittery as the vote approaches; look for a sharp sell-off in stocks and the Euro should the measure fail, although capital flight could benefit American stocks in the medium term. How a failure to approve the bailout will play on the streets of Athens is anybody's guess.

The world was a different place in 1832, yet modern observers should resist the urge to feel superior to those who once installed foreign rulers upon supposedly "backwards" nations. We just do it a little differently these days. Now, I realize that Angela Merkel isn't Bavarian, but let's not quibble. Installing her as absolute monarch of the Greeks isn't really all that much of a stretch from the position she holds today. As leader of the EU's largest and wealthiest nation, Ms. Merkel holds the future of Europe in her hands. She has been holding the Greeks' feet to the fire these past few months and it appears that the citizens of Athens don't appreciate the hotfoot. Assuming that she can rally the German legislature to the cause, Merkel will turn her attention to persuading the angry citizens of the EU of the necessity of preserving Greek pensions.  If she can pull of a performance of such royal proportions, she will effectively have shown herself to be Queen, not only of Greece, but of the European Union itself.

All Hail the Queen.