Greece’s future solely in the hands of Tsipras; he can direct the poor country any way he likes

The Prime Minister of Greece Alexis Tsipras (waving a hand) paid yesterday an official visit to the European Parliament. The president of the legislative welcomed the Greek leader and directed him to the plenary. (European Parliament Audiovisual Services, Event Date: 08/07/2015, City: Strasbourg, Copyright: © European Union 2015 EP).

The Prime Minister of Greece Alexis Tsipras (waving a hand) paid yesterday an official visit to the European Parliament. The president of the legislative welcomed the Greek leader and directed him to the plenary. (European Parliament Audiovisual Services, Event Date: 08/07/2015, City: Strasbourg, Copyright: © European Union 2015 EP).

Greece is obliged by today or the latest tomorrow Friday morning to submit to its Eurozone partners a new program with more severe austerity and deeper reforms, if the country wants to stay in the Eurozone. Alas, this is exactly the program the Greeks rejected last Sunday in a referendum. In case the Athens proposal is considered by Saturday’s Eurogroup (the 19 euro area ministers of finance) as inadequate, the EU 28 leaders’ summit convened for Sunday will set the path for a Grexit. It will be triggered by the collapse of the country’s banking system, after the European Central Bank cuts the liquidity lifeline. The introduction of a new currency or, at the limit, a parallel money, will seal this prospect.

This financial scenario leading to a Grexit can only be reversed if the Greek Prime Minister Alexis Tsipras chooses to totally alter the Greek political scenery. In this alternative path Tsipras would accept a third severe austerity and deep reforms program and introduce it to the Greek Parliament for approval. Many Greek political commentators insist that this is doable. Let’s see how he can do it.

How he can do it

As things stand now in Tsipras’ left-wing governing party, the SYRIZA, its extreme left deputies are expected to vote down this eventual third austerity program. However, the new plan can be approved in the legislative with a massive vote from the opposition parties. Last Monday, Prokopis Pavlopoulos the President of the Greek Republic summoned in all the Parliamentary party leaders – except the fascist Golden Down – of course including Tsipras. In this meeting the leaders present in the room, at the exception of the Communist Party, actually signed a document reassuring the PM that even a very tough new program will be voted for by their deputies.

In such a possible occurrence Tsipras will be able to easily pass in Parliament such a new severe Memorandum of Understanding, securing more funds from the country’s creditors. In case though that 13 or more deputies of the two government coalition parties (SYRIZA and the chauvinistic right-wing ANEL party) choose to vote down this legislative proposal, automatically Tsipras loses ‘the declared’ parliamentary base. If this turns out to be the case, the Greek Parliamentary tradition demands that the Prime Minister resigns on the spot and an early legislative election is held within the next 40 days.

New election

According to the constitution, this newer election, within the same year from the previous one of 25 January, will be conducted with party candidate lists drafted exclusively by their leaders. In this way Tsipras could exclude from re-election the SYRIZA deputies who rejected the new Memorandum, for the very good reason that they brought his government down. Luckily for him, there is strong evidence that he will win a possible new legislative election with a much larger majority than the 34.5% of January. At that time SYRIZA won 149 seats in a house of 300, forcing it to cooperate with ANEL’s 14 deputies in order to form a government.

Nevertheless, the Greek voters supported Tsipras’ crucial policy options with a 61.35% in last Sunday’s referendum. Not to forget that the question asked was quite vague and voters actually just backed Tsipras himself, thus making him an unquestionable leader, the dominant figure in Greece’s politics. This is a quasi guarantee that if a new election is held during the next weeks or months Tsipras is going to win it for sure with a strong majority.

Tsipras rules

Yet he won’t be any more the leader of the left but rather the leader of a center-left reformed mainstream party. The reason for that is that he would have banned from the party’s candidate lists the extreme left wingers. If this scenario materializes, Tsipras and his SYRIZA will cease inspiring other European unconventional left-wing political parties like the Spanish Podemos, which represent a real threat to the Germanic Europe’s economic policy strategy.

Debt restructuring

Coming back to the financial side of this scenario, it is certain that Greece would gain a much needed debt restructuring, going together with the bitter pill of the new austerity, deep reforms and privatizations program. The truth is that without a rescheduling of debt maturities, a lowering of interest rates, an extension of grace periods or even an outright haircut, the country will find it impossible to apply the new severe austerity and reforms program.

During the next three days until Sunday night, we will all know what Tsipras is going to do. Truly Greece’s future is now in his hands. He can actually turn the poor country any way he wants.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

WEF Davos 2016 LIVE: Cameron corroborates that Britain should remain in the EU

Are ECB’s €500 billion enough to revive Eurozone? Will the banks pass it to the real economy?

An ECB banker wants to change the European social model

Eurozone recession subsides

Stability in Europe has no chances because of Ukraine

ECB with an iron hand disciplines the smaller Eurozone member states; latest victim: Greece

COP21 Paris agreement: a non legally-binding climate pact won’t stop effectively global warming while EU’s Cañete throws hardest part to next Commission

European financial values on the rise

Draghi sees inflationary bubbles

Gloomy new statistics signify no end to Eurozone’s economic misery

Merry Christmas from Erdogan, Putin, Mogherini and the Polish firefighter

Germany loses leading export place

European Banking Union: no one is perfect

Dangerous Trumpism in the Middle East with an anti-European edge

COP21 Breaking News_08 December: Cities & Regions Launch Major Five-Year Vision to Take Action on Climate Change

Sponsored content: when QUALITY meets OPEX in manufacturing

European Youth, quo vadis?

G20 LIVE: “Our response needs to be robust…otherwise we will only find the fire we are trying to put out”, UN Secretary General Ban Ki-moon just lit up G20 in Antalya Turkey

Travel the world, find yourself

European Banking Union: Like the issue of a Eurobond?

Right2Water initiative: Is the Commission ready to listen to citizens?

Mobile World Congress 2015 first to debate EU’s new stance on Net Neutrality and Roaming Charges

Towards a seamless internal EU market for industrial goods

Arlington, USA: kick-off of the fifth round of the EU-US boxing match

The rise of alternative medical practices in modern sports

Will Europe be able to deal with the migration crisis alone if Turkey quits the pact?

Germany may prove right rejecting Commission’s bank resolution scheme

The Ukrainian crisis to destabilize Europe and the world for a long time

Why medical students decide to study abroad?

COP21 Breaking News: Paris Pact on Water and Climate Change Adaptation Announced

1 million citizens try to create a new EU institution

Nuclear weapons in Lithuania: defence against Russia or target for terrorists?

Deutsche Bank slammed by the US-based trio of IMF, Fed and Moody’s

Can the EU afford to block China’s business openings to Europe by denying her the ‘market economy status’?

Ukraine’s new political order not accepted in Crimea

MWC 2016 LIVE: Qualcomm looks to pick up Hamilton’s winning ways

The Five Chinese Girls

ECB’s first flight in Eurozone’s banking universe will be just a reconnaissance

daniela-runchi-jade-president__

A Sting Exclusive: “Education in Europe, fostering skills development inside and outside the school system”

The importance of exchanges for the medical students of the world

The ECB accuses the politicians of inaction, continues injecting billions to banks

Eurozone stagnates after exporting its recession to trading partners

The new European Union of banks is ready

JADE Romania Celebrates the 4th Anniversary

Syria: Why did the US-Russia brokered ceasefire collapse? What does the duo care for?

What we need for a better European Solidarity Corps

The next 48 hours may change the European Union

ECB to play down IMF’s alarms for deflation danger in the EU

How close is Eurozone to a new recession which may trigger formidable developments?

Eurozone: New data show recession and debt closer to explosion

The financial sector cripples Eurozone growth prospects

A Sting Exclusive: “China is Making Good Stories not Bad Ones”, Ambassador Yang highlights from Brussels

Is Eurozone preparing to abandon austerity and stagnation?

Greece to stay in the euro area but the cost to its people remains elusive

EU: Tax evasion and fraud flourish under political protection

Samsung’s profits fall as cheaper smartphones gain market share

Eurozone bank rescues ‘a la carte’ until 2015 then only bail-ins

‘Internal security’ or how to compromise citizens’ rights and also make huge profits

Education and Training: where do we stand in 2014?

Eurogroup president swallows statement on savings confiscation

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s