Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

[Jefferson23]

January 27, 2015

In ancient Greece, city states often rebelled against their overlords, who then besieged them to punish those responsible and re-impose outside control. Modern Greeks have likewise rebelled against EU authority by choosing a government led by the anti-austerity Syriza party and now face an economic siege aimed at forcing them to abide by past agreements with the EU.

The Greek government has a far weaker hand than Brussels and Berlin, but in his first days in power Prime Minister Alexis Tsipras has acted swiftly in establishing a government, with the names of the cabinet announced today. Yanis Varoufakis, a 53-year-old economist, becomes Finance Minister, having long argued for repayment of Greece’s massive loans to be linked to economic growth.

These are very early days but the new government is so far maintaining its momentum. Nick Malkoutzis, editor of the online magazine MacroPolis, says that “if Mr Tsipras can overcome fears that he will mess things up in his first few weeks in office, then he will have won half the battle”. The problem is that the Greek economy is already besieged – even healthy businesses cannot get bank loans – and things could get a lot worse. However astute a political tactician Mr Tsipras may be, Mr Malkoutzis believes his government could not survive the European Central Bank denying liquidity to the Greek banks “so they have to close”.

Despite economic calamities and a hard-fought election, Athens does not have an air of crisis. The general election on Sunday took place without a shot fired and the old government peacefully gave away to the new. There is a sense that both the eurozone and Greek governments want Greece to stay in the eurozone and not default on its debts so Greek commentators believe a compromise should be possible, if only after a long confrontation.

http://www.independent.co.uk/voices/greece-elections-in-times-like-these-the-eu-has-far-more-dangerous-adversaries-than-syriza-10006699.html

[safeinOhio]

1. Next move

Start to jail some those rich tax cheats.
That would be a shot heard around the world.

[Jefferson23]

2. We'll all be watching, very closely. Among other issues and challenges, this is concerning:

How capable is the Greek government of sustaining such a siege?

It was established at impressive speed, but only because Mr Tsipras has made a political gamble in allying himself with the Independent Greeks party to give him a majority in parliament. A small right-wing party opposed to austerity and EU dictation, it is notorious for its vicious feuds and racist views. By choosing it as a partner, Mr Tsipras shows the total priority he gives to economic issues.


It was a tremendous victory, hopefully more for everyone.

[quadrature]

3. I don't see any wiggle room for the two parties involved.

the new Greek gov't appears to be eager for
a fight. And that is what I expect to happen.

it will get ugly.

[Sparhawk60]

4. The Greek government has a far weaker hand than Brussels and Berlin

"The Greek government has a far weaker hand than Brussels and Berlin"

I disagree with this. Greece can default on the debt, and what can Berlin/the banks do about it? Not loan them any more money? Yes, that will be painful in the long run, but it sure beats selling your people in to slavery.

This whole mess is going to be painful, and it will not be pretty, but I just do not see that Greece really has any better options.

However; I do feel sorry for those banks who loaned Greece all that money. Well, actually, I lied, I don't feel for the banks at all. They made a fortune off the Greeks in the good time (for the banks), now the banks can take their losses in the bad times.

I hope the bankers loose a lot of sleep over this. Greece is really not that big of a deal for the 1%...but what if the idea that we can stand up to them spreads???? Scary thoughts indeed.