The experiences of Mr. Tsipras and Mr. Varoufakis from the European contact of the past few days were not the best. Wherever they went they heard talk of sympathy and understanding, but not commitment for a policy change. Most of their interlocutors referred them to what had been agreed and the institutional European bodies.
They have a Pontius Pilate appearance, clearly influenced by the harassment from Mrs. Merkel and her staff, who demanded that no promises be made to the Greeks.
Conservative Europe cannot endure Greek disputes or the anti-conformism of the new rulers. The Germans are loosing their minds over the dispute of their hegemony, especially how Mr. Tsipras described Mrs. Merkel and how Mr. Kotzias attempted to curb the European sanctions against Russia.
From whatever angle you examine this, the latest official statements from Germany suggest an inflexible stance, which is setting the tone for a conflict with the new Greek government. The classified document that leaked is indicative of their intentions and disposition.
Some have even likened Mr. Tsipras’ trips to those that Mr. Papandreou made in 2010 and which resulted in the statements from Kastelorizo and the hard bailout agreement.
Since then though many years have gone by, the crisis remains, the Greek people has suffered, the result has not been better and Mr. Tsipras as the right to dispute the policy which has been observed so far; he is correct, poses broader matters that concern Europe, has an opinion, is not bound and is clearly cultivating the prospect of a new agreement.
However great the applied pressure may be, the seed of doubt has been planted in Europe, the other side has been heard and now all the European people know that the Greek people can defend themselves in a dynamic and meaningful way.
That is why despite the tense atmosphere, it is commonly held that there is the will for an agreement, which can be achieved despite the many difficulties. Already there have been talks for a “bridge program” that will be the preamble to a medium-term program that will integrate the review and associate the previous hard effort to the new one. The difference is that our partners want a program with measures, policies, divs and surpluses that will justify its adoption, in technocratic terms.
There is also room for solutions for the debt, so long as they do not result in a major de facto write off. If the proposal is further developed to include a long repayment period then it may yield results and facilitate fiscal management; more so if the debt settlement is part of a greater solution to tackle the country’s financial problem.
By combining all of the above then we may have a deal to overcome the deadline on the 28th of February, which is looming, allowing ultimatums and fait accomplis.
Truth be told, however just Mr. Tsipras’ claims may be, it is necessary to be accompanied by a refined compromise, that will allow the new government the time to overcome the hurdle of the 28th of February.
The policy statement allows the opportunity to create the framework for an honest compromise. Mr. Tsipras knows first-hand the intentions of our partners, he is aware of the obligations stemming from the previous agreements, he knows the dangers threatening the country and its economy and we assume he has the necessary flexibility to adapt his claim accordingly.
The big step has been made. Europe recognizes him as the dominant expression of an alternative politics, the European people saw and heard of new Greek divs, the Greek problem has been described in the best possible way, but know it is time for maturity and the honest compromise.
Antonis Karakousis
PS: At the time that the above article was written, the ECB’s decision had not yet been made public, which makes this compromise so much more necessary.
