The Greek elections dominated the agenda at the last expanded meeting of the governing board of the European Central Bank, which all 28 central bankers of the European Union’s member-states attended.
Most of the central bankers were concerned about the result of Sunday, particularly if it will allow for the formation of a government capable of implementing the very demanding third bailout agreement.
Perhaps we do not realize the intensity of the program that the new government will be called to implement, but our partners know that the deadlines are pressing. They also know that the new Parliament will have to vote on a huge number of acts to allow the smooth funding of the country, while pushing forward with the reconstruction of the banking system, via which an attempt will be made to “build” a new growth model for Greece.
If the prerequisite acts are not passed through Parliament then no money will be paid out and if the Financial Stability Fund is not made independent, then the bank recapitalization will not be complete on time, thus affecting the sustainability of the credit institutions and the security of private deposits.
In other words, if a strong and efficient government does not emerge after Sunday’s elections, then everything will go back, the country will enter a new state of emergency and the threat of Grexit will return with a vengeance.
At this particular meeting of European central bankers, the governor of the Bank of Greece Mr. I. Stournaras was asked a slew of agonizing questions from his counterparts, who were seeking assurances that on Monday Greece will have a government and will not head back to the polling stations.
Mr. Stournaras assured that the political circumstances are better than before and explained that the party leaders of the two main contenders have provided assurances that straight after the elections they will form a government capable of fully implementing the summer agreement and maintain the country’s euro zone membership.
We do not know if Mr. Stournaras’ counterparts were convinced by his reassuring responses, but there can be no doubt that the framework for the next day is tight and fully planned out.
Under these circumstances, the voters must be aware that the next day is not going to be a walk in the park. Everyone who has decided that the country must remain in the euro zone must choose those who can offer guarantee safest possible course for the country. Everything else is for television.
Antonis Karakousis
Originally published in the Saturday print edition
