Athanase Papandropoulos

Greek Government Playing Dangerously with Time

The Greek government is ignoring the real economy and plays a very dangerous game with time, in an effort to maintain its political momentum till June. But after June?

EMS, Strategic Consulting, April 07, 2015

athanase papandropoulosEurozone with the help and solidarity of the EU partners or get out of it with its own powers.

In any case the “Institutions”, as Mr. Alexis Tsipras prefers to call them, have prepared for a long time now for both cases. And these institutions have shown characteristic patience all this time. Needless to say they are tired of dealing with a country which is not willing to proceed to reforms. It is its right. But it should leave us alone.

As for the special geo-strategic weight of Greece vis-a-vis the West, it is something to be examined. Currently, your country needs the western defense and arms help and not the other way around. Greece’s participation in NATO has always been problematic. When it should play a balancing role in the Balkans, after the collapse of communism, it did exactly the opposite. It created serious problems. So, if the Greek government wants to abandon the Atlantic Alliance and come closer with Moscow, it is free to do so. It will be a quite useful experience- even more useful when Greek people will be called to pay the relevant cost for this choice”.

A high EU diplomat and adviser of the European Commission, the man who said what was mentioned above was Spanish, and one day he climbed on the top of his country’s hierarchy. He illustrates a picture which is quite close to the reality. Europe is tired of Greece, and this feature will play a significant role from now on.

As it seems though, the Greek government does not share similar concerns. Its main concern is to buy more and more time in the negotiations with the international lenders, in order to satisfy its electorate. This tactic though, comes at the expense of the real economy and unemployment, resulting in high level of uncertainty and cost.

As Mr. Nikos Vettas noted, Executive Director of the Foundation for Economic and Industrial Research (IOBE), though not desirable, the exit from the Eurozone is not an unrealistic scenario. In any case, however, a hypothetical exit would have specific features:

Initially, the EU itself would never move to this direction without being sure that the responsibility will be totally attributed to the Greek side, as an exit would be its own decision or a result of objective weakness. Only this way the expansion of the “contagion” would be limited through the markets to other vulnerable players. Unfortunately, some of the moves in the European chessboard are of this nature, preparing the ground for the potential responsibilities’ attribution in the future.

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