On January 25, the Greeks vote in a snap election to elect a new parliament.
The elections are crucial not only for the
country but also for Europe.
Dutch political journalist Hans Kriek interviews
N. Peter Kramer, editor-in-chief of European Business Review, and president of
the Press Club Brussels-Europe, on the possible political and economic
implications if Greece’s far left party SYRIZA, led by Alexis Tsipras, wins the
election.
KRIEK: Across Europe,
the Greek elections are anxiously awaited. It looks like the radical left party
SYRIZA may win. What will be the consequences if this party comes to power, for
the Euro, the EU and especially for the huge loans that Greece must repay.
Is
there a real chance that Greece will get a prime minister named Tsipras?
KRAMER: "That's not unthinkable if you
look at the Greek polls. At the moment the poll ratings show SYRIZA ahead of
New Democracy, the liberal-conservative party lead by current Prime Minister
Antonis Samaras.
But keep in mind polls are polls and not elections. It’s often
the case the frontrunner in the polls at the end of the election -day is
disappointed by the results.
What makes winning the election more important
in Greece compared to other countries is the winner will receive a bonus of up to 50 extra seats (out of a
total of 300) in the Greek Parliament. "
KRIEK : Why are so many Greeks choosing Tsipras?
KRAMER: "Many out of sheer
desperation. Even food banks who feed poor people have to cut their services.
Last week I read there is now no more money even to offer instant soup, only funding for a plate of bad
food.
Unemployment, especially among young people, is incredibly high. The
incomes of many Greeks have fallen after severe cuts to wages.
People sometimes
have to choose whether they spend money on a doctor’s visit or to go to the
grocery store. And the worst aspect of all is the sheer utter hopelessness
people feel with the current economic situation.
There is no end in sight.
Greece has huge debts and has to repay everything without any flexibility. That
is an absolute rule from the so called Troika (European Commission, IMF and
European Central Bank).
However one of the Troika members, the IMF, has reluctantly
admitted recently they may have been too tough with the Greeks.
If he comes to
power, Tsipras wants to renegotiate a reduction in the debt repayment amounts which
could make money available to reinvest in the Greek economy and its people.
But
he still believes Greece should remain in the Eurozone and in the EU. His
opponent Samaras constantly attacks him with lies and falsehoods.
Implying the Greeks will end up like an
economic basket case similar to North Korean if SYRIZA comes to power.”
KRIEK:
We know that Chancellor Merkel and her Finance Minister Schauble don’t
want to negotiate at all. Merkel has already stated if necessary, the Eurozone
may have to consider a Greek exit.
KRAMER: "From a historical perspective
one could call Merkel’s attitude as immoral.
60 years ago the most aggressive nation in the world, that started a massive war, brutally invaded its
neighbours, exterminated millions of Jews and other minorities, and destroyed
entire cities, got a gift of 15 billion
German marks from its former enemies.
Twenty western countries cut nearly half of the debt Germany owed them.
But not
only that: for the rest of the debt Germany received a very beneficial
arrangement.
Which laid the foundation
for its economic recovery, one which was so successful it was described as: das
Wirtschaftswunder, the economic miracle.
Therefore isn’t it cynical for Germany
to now refuse help to Greece, one of the original twenty countries that offered
Germany the possibilities to become the wealthiest nations in Europe. "
KRIEK: How likely is Europe willing to do
everything to keep Greece on board?
KRAMER: "At the moment ‘Brussels'
tries to intimidate the Greek electorate,
European Commissioners, ECB, and individual MEPs, are all warning the
Greeks not to vote for Tsipras.
The best solution will be if the EU sits down
with the Greeks to create a better balance between strong growth opportunities
for the ailing Greek economy and more flexible rules for debt repayments.
Preferably
in a way, that the Greeks, especially the ones who have suffered most, can gain
a decent life and future. Otherwise Greece could become a dangerous time bomb.
Professor
De Grauwe of the London School of Economics, recently pointed out, if SYRIZA
will not come to power, New Democracy
will stay, one of the two political parties that in the last twenty years caused all this misery! "
KRIEK: But suppose there is a Greek exit;
how likely will this cause other countries to leave the Eurozone or the EU?
KRAMER: "That is hard to say. But if
necessary, if Tsipras wins power, I expect a new EU policy for Greece; and
probably also for other member states who still have problems, like Ireland, and
Portugal.
Also don’t forget large countries such as France and Italy also have
huge troubles with the rigid rules imposed by 'Brussels'.
Let’s see what Team-Juncker,
as the European Commission calls itself will do. They have already showed a
more flexible attitude than their predecessor, the Barroso commission".
Source: thepostonline.nl
By: N. Peter Kramer
