Greece has wasted almost the past three months in endless negotiations with the partners and creditors, following an anti-memorandum rhetoric, which all things considered, cannot be served in the present circumstances.

The extension of the negotiations for two and a half months caused a resurgence of insecurity, which essentially wiped away what trust had been built over the past five years; the vice grip on liquidity tightened unbearably, the funding gap was revealed and all remaining resources had to be pooled in the State’s account at the Bank of Greece, in order to pay the loan payments to avoid another possible disorderly default, which would no doubt have catastrophic consequences for the country and the economy.

Meanwhile, the situation for the real economy grew worse, as aside from the lack of funding from the banks, we now have a suspension of financial decisions from taxpayers, households, investors and businesses, on top of the State being late in making payments. Due to these circumstances in the first trimester of 2015, we are witnessing a new recession in the Greek economy.

On other words, the weak recovery of 2014 is giving way to a new recessionary phase, which may grow deeper if the state of uncertainty and insecurity carries on.

The whole situation is putting major pressure on the government, which won the elections with promises of a recovery and exit from the crisis, but for the time being is only counting loses.

Truth be told, the government has exhausted all possibilities, the Prime Minister has played all of his international cards and the Minister of Finances has tested everyone’s patience as a negotiator.

There are not many options anymore.

The solution to the Greek economic problem has to be a European one. That is what the talks in Moscow, Beijing and elsewhere have demonstrated, after all.

In this respect, the government has a few days left to come to a temporary agreement which will open some credit lines, in order to adequately prepare for the great negotiations in June.

A default is unacceptable by the Greek people. This should be clear to everyone.

The Prime Minister is now obliged to assume his share of the political cost to save the country. And he will do so, he has no other option.

Antonis Karakousis

Originally published in the Sunday print edition