Τετάρτη, 8 Ιουλίου 2015
Eurozone - Brace for impact
The recent referendum in Greece (in which roughly 2 out of 3 voters said ‘no’ to a bailout proposal involving more austerity and structural change) has made it difficult for Greek Prime Minister Tsipras to compromise with creditors. If he really wanted a better deal for Greece, he should have never called the referendum in the first place. Now, for his proposals to form a sound basis for negotiations with creditors, who narrow-mindedly stick to harsh austerity demanding unrealistic primary surpluses and refusing to consider seriously debt relief, Tsipras needs to accept austerity, especially if a commitment to debt relief is given to him. But austerity is what emphatically Greek voters rejected. He has imprisoned himself into a paradoxical situation.
All along, both players (Greece and its creditors) have refused to see the big picture – the protection of the eurozone. Like in a prisoner’s dilemma game, nobody wants Grexit but, sadly, this is what their actions will most likely bring about. Brace for impact.
Posted 6:15 μ.μ.