By all appearances, the negotiations with the Europeans that began on Wednesday are being carried out in a better climate, with both sides demonstrating a willingness to compromise.
All data and information from Brussels, Berlin and Athens suggest that an agreement will be reached at the Eurogroup on the 16th of February, capable of restoring a relative balance to the Greek economy.
Whatever the deal might be though, it may offer a return to normality, but it cannot secure everything.
From the official declaration of the election campaign period in December until today the economy has literally frozen, the Banks are barely operating, demand has taken a plunge and the budget execution is in danger of derailment.
As an example, public revenue in January was about 1 billion euros short and about 20% less than what had been budgeted. Indicative of the financial downturn is the significant reduction of 2014’s primary surplus.
This means that unless the new government activates the State administration mechanism and restores its operation to a satisfactory rate, then it is in danger of losing on the domestic front everything it may gain on the European front.
As one of Mr. Tsipras’ new ministers says, “after addressing the differences with the Europeans, the government must enter the battle for employment and productivity”.
“The fighters must now prove that they are also family men and women”, he added, perfectly illustrating the challenge that lies ahead.
Quite simply, if the Tsipras government turns out to be wasteful and irresponsible, then it will quickly lose the trust and advantage it earned, by standing up against the inflexible until now Europeans.
Antonis Karakousis
