The extension of negotiations with the European partners and creditors is not as dramatic as it was previously. Despite the delays and conflicts, the signs from Brussels are not negative. On the contrary the words from the Eurogroup officials are encouraging and the signs are optimistic.
The effort and spirit of cooperation are now emphatically recognized and European officials are expressing their surprise at the speed with which the recapitalization process of Greek banks is occurring. Brussels is essentially signaling an agreement and is encouraging the Tsipras government to carry on with the program that it accepted in the summer.
Officials in the European institutions argue that Europe wants Mr. Tsipras to succeed. They will even go a step further and do not hide the fact the European People’s Party is turning its head way from its sister party New Democracy and prefers the bailout program implementation from the SYRIZA-led government.
Some have considered such options a confirmation of the collapse of ideological barriers within Europe.
Others, with a greater sense of realize, merely observe that the interest of Europeans – Christian democrats or not – is for the Greek program to be successfully implemented so that Europe may once and for all rid itself of the Greek threat.
In any case, it is now clear that at least at this phase, Mr. Tsipras has the tolerance of the partners and opportunity to implement everything he committed to in the summer agreement, as well as to shape the conditions of the Greek economy’s exit from the long-term crisis.
The question that remains is whether the can discipline his government and party and whether he has the strength to face the many doubts that have prematurely emerged and which appear that they will escalate in the upcoming battle for the critical pension system reform.
The pension reform will be the mother of all battles for Mr. Tsipras. The outcome of this battle will determine a lot, especially in relation to restoring credibility, which in turn will decisively change the atmosphere for the Greek economy.
If Mr. Tsipras endures, if he wins the pension reform battle, he will secure the time to heal the wounds that the clash on pensions will cause.
The truth is that he does not have many options. If he does not fight the reform battle, the country will be faced against with the summer’s climate of suspicion and the threat of a Grexit. If he fights the battle he will suffer major losses, but he will also have the time to chance the circumstance.
In the end Mr. Tsipras too found his ‘only way’. Even though he may not like it, he has no other path to traverse…
Antonis Karakousis
