Economy

50 Shades Of Greece

By  |  0 Comments

by Raúl Ilargi Meijer, The Automatic Earth:

But since that may well be the exact position Syriza wants ‘the other side’ to be in, where they think they have prevailed, one will have to try and think a few steps ahead before judging the situation. There’s far more grey area here than many pundits seem to assume, easily 50 shades of it.

If Greece wouldn’t have given Germany the idea that it was winning, Athens would have already come very close to an exit from the eurozone. The problem with that is that it is not part of the mandate Syriza has been given by Greek voters. Who have spoken out for an end to austerity, but within the existing euro framework.

Varoufakis et al. may long have concluded that such a set-up is simply not realistic, but they would still have to work up to a situation where, at some point, they can present this to the people. And that can only be done after they can convincingly show that Germany and Holland refuse to honor the democratically decided mandate Syriza brings to the table.

They would have to make absolutely sure that the other side gets the blame for the failed negotiations. They have to do that anyway, even if a Grexit is not their preferred outcome. They need to be able to prove that they bent over backwards and Germany still wouldn’t play ball.

The 4-month extension debt deal agreed on this week is still contingent on a set of measures Varoufakis is due to hand to his various European ‘partners’ on Monday. If the ‘partners’ throw out the package, or too much of it, then Tsipras can go to the Greek people and say:

“Look, they’re not acting in good faith, they refuse to honor your democratic vote, and the mandate you handed us with that vote. So what are we going to do now? Do you want to stay in the eurozone and the austerity programs it forces upon you, or are we going to try to find out what would happen if we leave the euro?”

Even if Tsipras et al had been relatively sure, before the recent elections that brought them to power, what the negotiations with the ‘partners’ would lead to, it couldn’t have those negotiations and show the results to the voters. Perhaps as early as this Monday, it may be able to. It was simply always going to be a necessary step in the process.

Read More @ The Automatic Earth

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Skip to toolbar