Greek crisis: how long can Alexis Tsipras outmanoeuvre the troika? | Business | Larry Elliot – The Guardian

This is good read from Larry Elliot, Economic Editor at the Guardian. Check it out!

via Greek crisis: how long can Alexis Tsipras outmanoeuvre the troika? | Business | The Guardian.

Elliot considers whether Alexis Tsipras is effective in outmaneuvering the troika. Ultimately, I fear that it will be the Greek people who are the big losers. The creditors will not give extra money to Greece without hard reforms, despite all the protestations in Greece. For sure, the Tsipras government is right to point out the weaknesses of the previous negotiations – but those negotiations were ratified by a properly constituted Greek government. Now the people of Greece have said enough austerity and elected a left-wing government to be their mouthpiece.

Unless Prime Minister  Alexis Tsipras can convince the Greek people (and rebels in his own government) to accept ‘reasonable reforms’, then I fear that Greece will default on its debts and be forced to leave the European Community. Outside mainstream Europe and deprived of capital, Greece could well turn to Russia but the citizens of Greece will suffer Argentinian levels of poverty, I fear.

Thoughts

One response

  1. Dr Alf brings us an excellent piece from the Guardian, which poses the question “How long can Alex Tsipras outmanoevre the Troika”.

    The answer is probably forever because European leaders, like Angela Merkel, Hollande, Renzi, David Cameron and the Americans, all want Greece to remain in the Euro, as does Christine Lagarde, who seems to take her lead from her fellow Bilderbergers, particularly Angela Merkel, who she will be meeting later on this week in Austria.

    As long as people in Greece know that they will be kept in the Euro, come what may they will never effect meaningful reform to their economy and will never repay their debts.

    Why do I say this?

    To begin with leopards do not change their spots and to date Greece has demanded bailout after bailout to the tune of £300 billion gbp but when interest is factored in have not actually repaid anything.

    We are told that Greeks have endured 5 years of austerity and that because all the banks and institutions which underwrote Greek debt are interconnected that not bailing out Greece again and again and in reality forever, will mean that the creditors have more to lose financially.
    Before I believe that I would want to see all the figures independently assessed by a team of chartered accountants and experts in insolvency.

    This will not happen because there is no financial case for it capable of standing up to intense scrutiny.

    Instead we are offered nothing other than dire warnings, threats that there will be “unknown consequences”, that other PIIG countries will go the same way, that Greece will fall into the clutches of Vladimir Putin’s Russia, and worse that Greece will become a vassal state of China giving that country naval access to the Mediterranean and by implication further checkmating Air Sea Battle, the Pentagon’s strategy for containing China militarily.

    People are quick to forget that China has already bought a Greek island during the last bailout but one and provided additional assistance to the Greek government last time round.

    The travails of the Greek people are not unique and no worse than the difficulties lots of other people face but because they are Europeans (people like us), they seek to inculcate guilt and remorse in us at their lot and point the finger at their old nemesis the “Beastly Hun”.

    They do not use those words but they talk about the Nazis “ruining the country” and some of them have even demanded additional reparations for these 70 plus year old wrongs.

    Alex Tsipras has in the Troika a group of shameless people who couldn’t negotiate their way out of a paper bag and who know that in the end European taxpayers will be made to pay the price just as Cypriot bank customers were “haircutted” in the past.

    Greece should be trying to orchestrate its own salvation by restructuring its tourist industry to focus on wealthy foreign tourists interested in Voyages Jules Verne holidays at eye watering prices,examining what it is good at and developing new export industries and perhaps developing itself as a nearshoring location for Europe whilst creating competitors in the areas of shipping large enough to go head to head with Niarchos and Onassis.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: