Athens searches frantically for a new compromise between politics and economic reality

ECOFIN Council - February 2015. From left to right: Yanis Varoufakis, Greek Minister for Finance, Luis De Guindos Jurado, Spanish Minister for Economic Affairs and Competitiveness. (Audiovisual Services, European Council - Council of the European Union, Shoot location: Brussels - Belgium Shoot date: 17/02/2015).

ECOFIN Council – February 2015. From left to right: Yanis Varoufakis, Greek Minister for Finance, Luis De Guindos Jurado, Spanish Minister for Economic Affairs and Competitiveness. (Audiovisual Services, European Council – Council of the European Union, Shoot location: Brussels – Belgium Shoot date: 17/02/2015).

This week the new Greek government started faltering on all accounts. The young Prime Minister Alexis Tsipras, who got elected on 25 January under a populist banner to change everything in this crisis stricken nation, proposed Prokopis Pavlopoulos for President of the Republic, an old fox representing the corrupt and incompetent political system which governed the country for the last thirty years. On the same day, Tuesday, Tsipras also tried to cheat his compatriots and deceive the European Union too by asking for a continuation of Eurozone’s financial support but ostensibly ‘denouncing’ the austerity that goes with it, knowing very well that he can’t have the one without the other. Today in Brussels the Eurozone will decide if the latest Greek proposal can constitute a base for negotiations. The ECB conceded yesterday afternoon only an additional €3.5 billion in liquidity that can keep the Greek banks alive for only a few days. But let’s return to Athens. Picking a President Yesterday Tsipras picked this person for President of the Republic, and by doing so he let down the Greeks who had believed he meant what he had said about fighting the clientele politics that Pavlopoulos represents. On the same day Tsipras tried to cover up an almost total repudiation of his pre-election uncompromising rhetoric against the ‘Memorandum of Understanding’ his country has signed with its Eurozone peers. The MoU contains both; a soft loan agreement and an austerity and reform program. The one doesn’t exist without the other. Yet Tsipras insists that Greece can keep receiving soft loans from Eurozone without applying strict conditions. During the two and a half years after June 2012 when the current Memorandum was signed by Greece and the ‘Troika’ of EU-ECB-IMF, Tsipras was very eloquent slamming every politician who would even remotely insinuate that the country needed it. SYRIZA has turned the terms ‘Troika’ and ‘Memorandum’ into real swear words. Conciliating promises and reality Tsipras, under this banner, dragged the country to the 25 January legislative election. The term of the incumbent President of the Republic expires in March and the constitution requires the election of a new President by the Parliament with a 3/5 majority that the previous center-right-socialist (New Democracy- PASOK) government couldn’t summon. After three barren votes the previous Prime Minister Antonis Samaras, the leader of New Democracy, was obliged to dissolve the Parliament and call an early election that all opinion polls were predicting Tsipras and his left-wing SYRIZA party were expected to win, as it actually happened on 25 January. Still SYRIZA didn’t win an absolute majority and had to form a coalition government with an extreme right-wing, nationalist anti-immigrant party the Independent Greeks (ANEL). The connecting material was their common populist anti-Memorandum, anti-Troika, nationalist rhetoric. ANEL is an offspring of New Democracy and its leader Panos Kamenos has served as minister in conservative governments in the recent past. He was rewarded by Tsipras and now holds the portfolio of National Defense. All that for what? It’s really an absurdity that both the parliamentary groups of Tsipras’ SYRIZA and the ANEL of Kamenos are now proposing an old New Democracy Politian, a real fox of the Greek clientele political system, Prokopis Pavlopoulos for President of the Republic, whom Samaras can’t refuse. Had Tsipras and Kamenos done so in the previous Parliament and no legislative election would have been held, neither the country would have had any problems of the existential kind that it now faces. In short, it was not the country or its people that Tsipras and Kamenos bothered to ‘save’, but it’s now proven beyond reasonable doubt that they just wanted to rule over them. Let’s now turn to the other trick that Tsipras and Kamenos are trying to sell to Athens and Brussels. Having sold ‘national dignity’ to Greeks and the end of austerity, they both perfectly knew that this would end up, as it now has, to capital outflows and a bank run. In view of that, they are presently trying to convince everybody within and without the country that it is possible to continue receiving soft loans from Eurozone, without strict conditions. They pretend they can repudiate austerity, structural reforms, deregulation and privatizations and still get money from Europe. Political brinkmanship in economics To achieve this, the duo now proposes to Greece’s Eurozone partners to sign a new loan agreement, but with limited auditing and conditionality. Of course this is mainly addressed to the internal audience, while Tsipras and Kamenos hope that in Brussels they will be able to conclude a political accord, concealing the real tough terms. Those will be agreed at a later stage, when the public opinion in the country would be more perceptive to realities. In any case they are both caught between their electoral promises for less austerity and the financial realities. In reality the Greek government is playing with words trying to avoid the use of the terms ‘Troika’ and ‘Memorandum’. It is exactly at this stage that the Greek issue has currently culminated. Athens is about to propose today the extension of the Master Financial Assistance Facility Agreement of 2012 of €109.1 billion endorsed by Greece and the European Financial Stability Fund, representing the EU and the Eurozone member states. This is not exactly the Memorandum of Understanding but contains all the financial aid details and conditions. Athens is happy with that for as long as the words ‘Troika’ and ‘Memorandum’ are not mentioned, despite the fact that the terms and conditions related to auditing, austerity and reforms are there all right. Caught in words Tsipras is really trapped between his pre-electoral rhetoric and the pressing economic realities, with capital massively flowing out of the country and a bank run that accelerates. It’s up to Germany and Brussels to decide if they want to pay another lip service to Greece and understand the idiosyncrasies of Athens. By the same token it’s not at all clear where a blunt denial by Berlin could lead Greece and its precarious government. The administration contains even neo-Stalinist elements, who could long for a state-capitalism kind of closed economy, hoping for Russian support. In such an uncharted terrain accidents do happen and nobody can predict where they could lead.  

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© Unsplash/Angus Gray Ship transits through the Strait of Hormuz have dropped by over 90 per cent since the crisis escalated in late February 2026.

Hormuz crisis strangling global economy, Guterres warns, demanding solutions to end stalemate

This article is published in association with United Nations. The escalating crisis in the Strait of Hormuz could push tens of millions into poverty, trigger a surge in global hunger and even tip the world towards recession, the UN Secretary-General warned on Thursday. António Guterres decried the restrictions on free passage through the crucial chokepoint which […]
This article is published in association with United Nations.

AI in advertising risks fuelling information crisis, UN warns

This article is published in association with United Nations. With spending on advertising topping $1 trillion a year worldwide, the United Nations on Wednesday highlighted the untapped power of major brands to shape the future of Artificial Intelligence, warning that a failure to act could deepen a global information integrity crisis. In a new brief titled […]
This article is published in association with United Nations.

2015 nuclear deal ‘no basis’ for any new agreement with Iran

This article is published in association with United Nations. The 2015 nuclear accord with Iran cannot be the starting point for a new agreement with the country, the head of the International Atomic Energy Agency (IAEA) said on Wednesday in New York.  Rafael Mariano Grossi was speaking during a press conference at UN Headquarters held on […]
Credit:Unsplash)

From Hormuz to Lebanon, crisis reverberates through trade routes, upending humanitarian networks

© WHO/Hanan Balkhy In Gaza displaced families are living in overcrowded tents and makeshift shelters, surrounded by waste and debris, with limited access to safe water and sanitation services. This article is published in association with United Nations. Disruptions in the Strait of Hormuz continue to send shockwaves through global food systems, the UN Food and Agriculture […]
© UNICEF/Mohamed Zakaria A displacement centre in El Fasher, North Darfur (file).

World News in Brief: Sudan drone attacks condemned, South Sudan violence, airstrikes in Ukraine, South Africa Freedom Day

This article is published in association with United Nations. The United Nations has condemned two recent drone attacks in Sudan, one of which left seven dead, Spokesperson Stéphane Dujarric said on Monday during his regular media briefing in New York. An aid truck from the UN refugee agency (UNHCR) that was carrying emergency shelter kits came under attack by […]
© IMO/Cihancan Tunay A ship makes its way across an ocean.

Chokepoints and conflict: How the Hormuz crisis is exposing global shipping vulnerabilities

This article is published in association with United Nations. The blockading of ships in the Strait of Hormuz as a result of the conflict between the United States and Iran has demonstrated how ships and seafarers have become “leverage in geopolitical disputes,” according to the head of the UN’s International Maritime Organization (IMO). Since conflict began […]
Middle East war: After oil and gas, concerns grow over minerals crunch

Middle East war: After oil and gas, concerns grow over minerals crunch

This article is published in association with United Nations. The shipping crisis in the Strait of Hormuz caused by war in the Middle East has exposed a new threat: a looming shortage of strategic minerals that drive economies all over the world – and a race by countries to obtain them. Until war erupted on 28 […]
This article is published in association with United Nations.

Ceasefire extension offers diplomatic opening, but tensions persist in Strait of Hormuz

This article is published in association with United Nations. The United States’ decision to extend a fragile ceasefire with Iran has kept a narrow window open for diplomacy, but fresh security incidents in the Strait of Hormuz on Wednesday underscore the volatility of the situation and the risks to global shipping and regional stability. The UN […]
UN News Moreira da Silva (right), Executive Director of UNOPS on a visit to the Gaza Strip.

Strait of Hormuz: With hunger looming, life-saving fertiliser shipments cannot wait, head of UN task force says

This article is published in association with United Nations. As the Persian Gulf crisis continues, time is ticking for farmers who rely on fertilizer shipped via the Strait of Hormuz – and millions worldwide who depend on their crops, particularly in vulnerable countries such as war-torn Sudan.  In normal times, one third of global fertiliser trade […]
UN News A popular market in Khan Younis, southern Gaza Strip.

Economic collapse pushes highly educated Gazans into the ‘survival economy’

This article is published in association with United Nations. Young Palestinians in Gaza with university-level educations are setting aside dreams of putting their hard-won skills into practice and doing whatever they can to survive.  Abdullah al-Khawaja, an electrical engineering graduate displaced from Rafah to Khan Younis, now stands behind a small spice stall, having lost the […]
MONUSCO/Didier Vignon Dossou-Gbakon MONUSCO peacekeepers protect civilians in Ituri, eastern DRC.

World News in Brief: AI diagnostics, humanitarian deal for DR Congo, rights abuse allegations in Belarus, Ukraine children bear heaviest burden

This article is published in association with United Nations. New data shows that nearly three in four countries in Europe now use Artificial Intelligence in their health services to make a diagnosis. According to the UN World Health Organization (WHO) joint report with the European Union, 74% of countries in the bloc use AI tools in medical […]
© WFP The conflict in the Middle East is impacting the cost of food in many parts of the world.

Time running out on development goals as finance dries up, UN warns

This article is published in association with United Nations. Rising conflicts, the climate crisis and shrinking development finance are putting growing pressure on the poorest and most vulnerable countries – pushing development goals further off track. The warning comes in the Financing for Sustainable Development Report 2026 (FSDR), a new UN report launched on Monday, which finds […]
Ukraine’s women at breaking point after four years of war as attacks on energy, healthcare continue – UN humanitarians

World News in Brief: Myanmar amnesty, rising needs in Afghanistan, another power loss at Ukraine nuclear plant

This article is published in association with United Nations. Authorities in Myanmar released the country’s ousted president from prison on Friday, along with some 4,000 other people, as part of an amnesty to mark the traditional New Year festival. President Win Myint had been in jail since February 2021 when the military overthrew Myanmar’s democratically elected […]
UN Photo/Eskinder Debebe Siobhán Mullally, Special Rapporteur on Trafficking in Persons, especially women and children, one of the UN independent human rights experts calling for more accountability for the alleged trafficking victims in the Epstein files.

The Epstein files: Rights experts demand accountability, call for probe into trafficking allegations

This article is published in association with United Nations. UN independent human rights experts called on Thursday for justice and accountability for young women and girls who were trafficked systematically as part of allegations contained in the so-called Epstein files. The Human Rights Council-appointed experts also issued a general warning over the “continuing violence of patriarchal power systems” revealed […]
© World Bank A ship offloads its cargo at the port in Nuku'alofa, Tonga.

Middle East conflict chokes end of supply chain as lights go out in the Pacific

This article is published in association with United Nations. For Pacific Island countries, the Middle East crisis is not a distant geopolitical event. It is already showing up in higher fuel prices, electricity uncertainty and fears that communities sitting at the far end of global supply chains could be pushed into deeper economic insecurity. “We are […]
© UNICEF/Fouad Choufany The Basta neighbourhood in Beirut, Lebanon, lies in ruins.

‘Time for diplomacy over escalation’ in Middle East war: Guterres

This article is published in association with United Nations. As the war in the Middle East continues, the United Nations Secretary-General issued a passionate call for “serious negotiations” between the US and Iran to resume, warning that respect for international law “is being trampled” underfoot.  Addressing journalists at UN Headquarters in New York outside the Security […]
© IFAD/GMB Akash Prolonged disruptions to fuel and natural gas supplies could affect the global availability of fertilizers and impact crop yields. (file photo)

‘Clock is ticking’: Hormuz disruption raises fears of global food crisis

This article is published in association with United Nations. The clock is ticking for global food systems as disruptions in the Strait of Hormuz threaten to choke off the flow of fuel and crucial fertilizers needed for the next planting season – also raising the risk of higher food prices and a new wave of inflation.  […]
This article is published in association with United Nations.

Lebanon airstrike casualties ‘still under the rubble’ as ambulances, hospitals face new threats

This article is published in association with United Nations. With Lebanon still reeling from Israel’s devastating airstrikes on 8 April, UN humanitarians reported new fears of attacks on ambulances and looming food shortages in the south of the country on Friday. Speaking from Beirut, where he witnessed Wednesday’s attacks first-hand, the World Health Organization (WHO)’s representative […]
This article is published in association with United Nations.

Lebanon: Health system overwhelmed following a ‘horrific’ day of Israeli strikes

This article is published in association with United Nations. The scale and speed of destruction from the wave of airstrikes in Lebanon which began just hours after the US-Iran ceasefire announcement, has left the country’s already strained health system struggling to cope, according to the World Health Organization (WHO). WHO Representative in Lebanon Dr. Abdinasir Abubakar […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com