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After NO a new compromise is needed

Greek voters have, with a clear majority, rejected the economic package the Eurozone presented recently. They said ‘no’ to a policy that would have prolonged the failing austerity-dominated policies of recent years. But the ‘no’ did not reject Greece’s EU membership or the Euro.

By: N. Peter Kramer - Posted: Monday, July 6, 2015

The history of European integration shows that compromise at the negotiation table is the only way of moving forward together.
The history of European integration shows that compromise at the negotiation table is the only way of moving forward together.

A vast majority of Greek citizens want continued affiliation with the EU and the Euro. Reactions by some other Eurozone countries and some institutions however make it clear that the Greek people’s aspirations will not be easy to fulfill. Because of this, action towards a fair compromise must be taken very fast in order to avoid an economic meltdown that would lead to a Grexit.


In order to open the door towards a fair new deal, both sides have to do their utmost. Such a fair deal must include the end of suffocating austerity; must promote the reforms necessary to facilitate a positive economic dynamic in Greece; must address the issue of a debt relief plan, and must facilitate investment, notably in sustainable sectors of the economy.

Such a deal is certainly still possible with a renewal of trust and good will from both sides. But huge dangers are looming for Greece and the rest of Europe. The ECB has to take adequate measures to stabilise the Greek banking system. The Greek government has to demonstrate willingness to implement some reforms that are absolutely needed. Other Eurozone governments have to withstand populist and resentful pressures towards a Grexit. The history of European integration shows that compromise at the negotiation table is the only way of moving forward together. During the last week, under the pressure of the impending referendum, a lot of bad blood has been created through mutual irresponsible attacks. This must be stopped. 


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