Europe’s impossible dilemma: Let Greece stay or let it go?
Agence France-Presse
06 Jul 2015 at 09:43 ET
Greek Prime Minister Alexis Tsipras addresses an anti-austerity rally at the Syntagma square in Athens on July 3, 2015 (AFP Photo/Yannis Behrakis)
Don't miss stories. Follow Raw Story!
Europe faces a near impossible choice between giving debt-laden Greece a chance or pushing it out of the euro and risking global turmoil, analysts said Sunday, after Greek voters overwhelmingly rejected international creditors’ terms.
Berlin, Paris and Brussels all warned in the run-up to Sunday’s referendum that a ‘No’ vote to the EU-IMF reform demands was a ‘No’ vote for the single currency and a return to the drachma.
Some analysts say the cold reality of a possible “Grexit” may make some leaders agree with Prime Minister Alexis Tsipras that the shock result does not necessarily have to mean a break with Europe.
“EU member states will give Greece another chance, but there is very little time and this will really be the last chance,” Nicolas Veron of the Bruegel think-tank in Brussels told AFP.
He said a Greek exit from the 19-country currency union could come about “very rapidly” if action was not taken quickly.
The referendum result — a rejection of more austerity after five years of pain for Greece, came as a surprise to many European governments — because “lots of people were relying on the rationality of the process, and confused their desires for reality,” he added.
The creditors face a difficult choice between trying to avoid the risk of contagion from a Greek euro exit — plus the political and symbolic implications of the loss of a historic European nation from the club — or sticking to their austerity guns.
– ‘Prepare for drachma’ –
The radical leftist government led by Tsipras and his Syriza party has been at loggerheads with its creditors since it was elected in January on a tough anti-austerity platform.
Talks broke down last week when the eurozone refused to extend Greece’s bailout past June 30, and there are still few signs that the other 18 members of the currency club are willing to compromise.
Eurozone leaders are to hold a special summit on Tuesday in Brussels which could well be the last chance to reach some kind of deal before the European Central Bank cuts off emergency liquidity assistance (ELA) to Greece’s struggling banks.
Slovakia’s Finance Minister Peter Kazimir poured cold water on the chances of success, saying that the “nightmare of the ‘euro-architects’ that a country could leave the club seems like a realistic scenario after Greece voted ‘No’ today.”
“I think it’s going to lead to Grexit,” Pieter Cleppe of the Open Europe think-tank told AFP.
“The EU doesn’t want to be seen as the one pulling the trigger. But that shouldn’t be the only reason for not pulling it — I think it would be irresponsible not to prepare for drachma if you think it’s impossible to get a deal with the eurozone finance ministers.
“And I think that’s going to be very hard, so why keep pretending and wasting precious time, when you risk social breakdown.”
He said that without an extension of ECB funding “there is no other way than to provide a parallel currency.”
– Pandora’s Box –
Greek Finance Minister Yanis Varoufakis insisted on Sunday night that a parallel currency was not on the table and that Athens could strike a deal, but that will take hard work, analysts said.
Pouring more money into the black hole of Greece’s finances will not be popular with voters in other eurozone countries, particularly in the more hardline Baltics, Finland and the Netherlands, said Anne Laure Delatte, an economist at the French Institute for Scientific Research.
“What could work in the Greeks’ favour is the radical uncertainty, and the pressure from the Americans, who fear a new financial crisis,” she said.
“But what could count against them is the idea that the eurozone could do better without them, and the pressure from voters.”
Failure to do a deal would be a boost for populist leaders like France’s Marine Le Pen and Britain’s Nigel Farage who made gains in European Parliament elections last year, said Pascal Delwit, political science professor at Free University of Belgium.
“I find it hard to imagine that we are heading towards Grexit,” he said. “European leaders don’t want to open a Pandora’s Box.”
http://www.rawstory.com/2015/07/europes-impossible-dilemma-let-greece-stay-or-let-it-go/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheRawStory+%28The+Raw+Story%29
Agence France-Presse
06 Jul 2015 at 09:43 ET
Greek Prime Minister Alexis Tsipras addresses an anti-austerity rally at the Syntagma square in Athens on July 3, 2015 (AFP Photo/Yannis Behrakis)
Don't miss stories. Follow Raw Story!
Europe faces a near impossible choice between giving debt-laden Greece a chance or pushing it out of the euro and risking global turmoil, analysts said Sunday, after Greek voters overwhelmingly rejected international creditors’ terms.
Berlin, Paris and Brussels all warned in the run-up to Sunday’s referendum that a ‘No’ vote to the EU-IMF reform demands was a ‘No’ vote for the single currency and a return to the drachma.
Some analysts say the cold reality of a possible “Grexit” may make some leaders agree with Prime Minister Alexis Tsipras that the shock result does not necessarily have to mean a break with Europe.
“EU member states will give Greece another chance, but there is very little time and this will really be the last chance,” Nicolas Veron of the Bruegel think-tank in Brussels told AFP.
He said a Greek exit from the 19-country currency union could come about “very rapidly” if action was not taken quickly.
The referendum result — a rejection of more austerity after five years of pain for Greece, came as a surprise to many European governments — because “lots of people were relying on the rationality of the process, and confused their desires for reality,” he added.
The creditors face a difficult choice between trying to avoid the risk of contagion from a Greek euro exit — plus the political and symbolic implications of the loss of a historic European nation from the club — or sticking to their austerity guns.
– ‘Prepare for drachma’ –
The radical leftist government led by Tsipras and his Syriza party has been at loggerheads with its creditors since it was elected in January on a tough anti-austerity platform.
Talks broke down last week when the eurozone refused to extend Greece’s bailout past June 30, and there are still few signs that the other 18 members of the currency club are willing to compromise.
Eurozone leaders are to hold a special summit on Tuesday in Brussels which could well be the last chance to reach some kind of deal before the European Central Bank cuts off emergency liquidity assistance (ELA) to Greece’s struggling banks.
Slovakia’s Finance Minister Peter Kazimir poured cold water on the chances of success, saying that the “nightmare of the ‘euro-architects’ that a country could leave the club seems like a realistic scenario after Greece voted ‘No’ today.”
“I think it’s going to lead to Grexit,” Pieter Cleppe of the Open Europe think-tank told AFP.
“The EU doesn’t want to be seen as the one pulling the trigger. But that shouldn’t be the only reason for not pulling it — I think it would be irresponsible not to prepare for drachma if you think it’s impossible to get a deal with the eurozone finance ministers.
“And I think that’s going to be very hard, so why keep pretending and wasting precious time, when you risk social breakdown.”
He said that without an extension of ECB funding “there is no other way than to provide a parallel currency.”
– Pandora’s Box –
Greek Finance Minister Yanis Varoufakis insisted on Sunday night that a parallel currency was not on the table and that Athens could strike a deal, but that will take hard work, analysts said.
Pouring more money into the black hole of Greece’s finances will not be popular with voters in other eurozone countries, particularly in the more hardline Baltics, Finland and the Netherlands, said Anne Laure Delatte, an economist at the French Institute for Scientific Research.
“What could work in the Greeks’ favour is the radical uncertainty, and the pressure from the Americans, who fear a new financial crisis,” she said.
“But what could count against them is the idea that the eurozone could do better without them, and the pressure from voters.”
Failure to do a deal would be a boost for populist leaders like France’s Marine Le Pen and Britain’s Nigel Farage who made gains in European Parliament elections last year, said Pascal Delwit, political science professor at Free University of Belgium.
“I find it hard to imagine that we are heading towards Grexit,” he said. “European leaders don’t want to open a Pandora’s Box.”
http://www.rawstory.com/2015/07/europes-impossible-dilemma-let-greece-stay-or-let-it-go/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheRawStory+%28The+Raw+Story%29
Today at 8:21 am by Rocky
» The Foreign Minister questions the "Iraqi resistance" attacks against Israel: the other side did not
Today at 8:20 am by Rocky
» The Minister of Labor announces progress in the electronic payment system
Today at 8:17 am by Rocky
» Interior Ministry: For the first time, we controlled the smuggling of petroleum derivatives by 98 pe
Today at 8:16 am by Rocky
» International companies offer offers to invest in the Dhi Qar marshes.. What distinguishes them?
Today at 8:15 am by Rocky
» “Tough” comments on interest rates raise the dollar globally
Today at 8:14 am by Rocky
» Iraq is the fifth largest oil supplier to South Korea in a month
Today at 8:12 am by Rocky
» Recovering more than 100 billion as a result of more than 200,000 employees on social welfare
Today at 8:11 am by Rocky
» The Sudanese consultant announces the completion of Baghdad Metro track designs
Today at 8:08 am by Rocky
» Al-Sudani stresses ending the problem of triple-shift schools
Today at 8:07 am by Rocky
» Iraq begins building two new tankers to transport petroleum products
Today at 8:06 am by Rocky
» Forming a council for “competition and preventing monopoly”
Today at 8:04 am by Rocky
» Features of an Iraqi-Turkish agreement regarding the status of the Kurdistan Workers’ Party
Today at 8:02 am by Rocky
» {Al-Buzrajiya} between the hammer of fraud and the power of the owners
Today at 8:01 am by Rocky
» Ministry of Oil: The gas sector is witnessing great development
Today at 7:59 am by Rocky
» An agreement with Britain in the field of securities
Today at 7:58 am by Rocky
» Discussions between Baghdad and Ankara to open a new port
Today at 7:57 am by Rocky
» Trade: About 11 million citizens updated their new card information
Today at 7:56 am by Rocky
» Electronic payment is sustainable growth
Today at 7:55 am by Rocky
» Experts: Iraq qualifies to be an important tourist country
Today at 7:54 am by Rocky
» utube 3/28/24 MM&C Iraqi Dinar - IQD Update - SWIFT - Purchasing Power - Urban Renaissance - Releas
Today at 6:24 am by Rocky
» utube MM&C 3/26/24 Iraqi Dinar - IQD Update - Strength Dinar - Automation ASYCUDA - World Bank - D
Today at 6:21 am by Rocky
» Amending the Health Professions Law “robs” scientists of the central appointment 3 years after it wa
Today at 6:20 am by Rocky
» Is the “blessings package” that Erbil paid to the citizens of Kurdistan related to the elections?
Today at 6:19 am by Rocky
» Exceeded 5,000 projects.. Allocating 10 trillion dinars to support governorate reconstruction plans
Today at 6:18 am by Rocky
» “His need no longer exists.” Parliamentary Finance confirms the necessity of returning the retiremen
Today at 6:17 am by Rocky
» To communicate with the bases... 12 directives from Al-Sadr, including blocking numbers for non-gove
Today at 6:15 am by Rocky
» In an interview with "Baghdad Today"... an Iranian researcher reveals the importance of Haniyeh's vi
Today at 6:14 am by Rocky
» After it was 63 trillion in 2023... the 2024 budget deficit will rise to 80 trillion dinars
Today at 6:13 am by Rocky
» Parliament reveals the date of the first evaluation of the governors and determines the party respon
Today at 6:11 am by Rocky
» The President of the Republic informs Al-Araji and Al-Basri: Momentum must be mobilized to eliminate
Today at 6:10 am by Rocky
» Can the Federal Court sue others? A legal clarification of its response mechanism to abuse
Today at 6:09 am by Rocky
» Despite promises to soon stop burning gas.. What is the secret behind Iraq renewing the Iranian gas
Today at 6:07 am by Rocky
» Advisor to Al-Sudani: The dollar is on the way to further decline, and 70% of Iraqi traders have ent
Today at 6:06 am by Rocky
» Iraq exported more than 99 million barrels of oil last February
Today at 6:04 am by Rocky
» Barzani “gives good news” to Kurdistan employees: salaries, land, and loan exemptions
Today at 6:03 am by Rocky
» Alia Nassif: Nour Zuhair returned to the port of Umm Qasr to make deals.. An influential Shiite forc
Today at 6:02 am by Rocky
» The Prime Minister announces the movement of nearly 500 stalled projects
Today at 6:00 am by Rocky
» A government strategy to enhance investments.. Iraq is on the verge of a new era of economic develop
Today at 5:59 am by Rocky
» Ranging between 20% and 50%.. The Kurdistan government decides to reduce service fees, customs dutie
Today at 5:58 am by Rocky
» Al-Sudani: The reform approach in the security services is an integral part of reform in other secto
Today at 5:56 am by Rocky
» Everyone in Iraq wants the Sudanese visit to Washington to be successful, even the factions!
Today at 5:55 am by Rocky
» Sources and experts expect the agenda.. in his bag is the Baghdad dollar and the factions’ truce, bu
Today at 5:54 am by Rocky
» The decision to raise gasoline prices arouses the ire of drivers...a reminder of the large demonstra
Today at 5:53 am by Rocky
» Parliamentary services: 3 important hospitals in Baghdad will enter service at the end of the year
Today at 5:52 am by Rocky
» Iraq signs a contract to supply Iranian gas for a period of five years
Today at 5:50 am by Rocky
» Parliament adds a voting paragraph on amending the Penal Code to its agenda
Today at 5:49 am by Rocky
» His political advisor: We are not afraid of Sudanese entering the elections alone
Today at 5:48 am by Rocky
» Parliamentary services explain the reasons for the rise in real estate prices in Baghdad
Today at 5:46 am by Rocky
» Attia, criticizing the government's decisions: "The citizen's feathers will be ruffled without servi
Today at 5:45 am by Rocky
» Parliamentary Communications: Zain Iraq and Asiacell did not pay their debts
Today at 5:44 am by Rocky
» The Governor of Karbala announces the imminent establishment of the largest industrial city in the c
Today at 5:43 am by Rocky
» A government determination to end the issue of displaced persons in the middle of this year
Today at 5:42 am by Rocky
» Iraq buys gas from Kurdistan to generate electricity
Today at 5:41 am by Rocky
» Parliamentary signatures to include an amendment to the internal regulations to decide the choice of
Today at 5:40 am by Rocky
» In Basra.. a demonstration against foreign workers in Iraqi companies (video)
Today at 5:38 am by Rocky
» Al-Samarrai: Presidency of Parliament is an entitlement to the constituents, and calling it a “frame
Today at 5:36 am by Rocky
» Electronic food supplies in 6 governorates... covering 11 million Iraqis and “writing off” about 700
Today at 5:34 am by Rocky
» Corruption of the Ministry of Transport.. Representatives express their surprise at the minister’s s
Today at 5:32 am by Rocky
» The biggest supporter of the invasion of Iraq.. The death of former US Senator Joe Lieberman
Today at 5:31 am by Rocky
» Iraq is ranked “late.” A list of the most and least safe Arab countries for women
Today at 5:30 am by Rocky
» The Council of Ministers exempts the Gulf Interconnection Authority from guarantee fees: it is a gov
Yesterday at 8:48 am by Rocky
» The Iraqi government raises the size of the 2024 budget, and Parliament is “surprised”
Yesterday at 8:46 am by Rocky
» Popular Movement: We have many economic options away from American hegemony
Yesterday at 8:42 am by Rocky
» The Oil Parliament stresses the need to transfer part of the revenues to the producing governorates
Yesterday at 8:41 am by Rocky
» It will cover 14 regions in eastern Iraq.. A deputy reveals the “border electricity” project
Yesterday at 8:40 am by Rocky
» Experts Warn Mass Migration Threatens US Food Security
Yesterday at 8:37 am by Bama Diva
» Al-Fateh: America occupies Iraq through agreements
Yesterday at 8:37 am by Rocky
» Anger in Iraq over a "sudden decision"... and a reminder of a "general strike" that paralyzed the co
Yesterday at 8:34 am by Rocky
» Parliamentary Committee: Parliament is discussing today a decision that “disturbed” the Iraqis
Yesterday at 8:33 am by Rocky
» Ministry of Electricity: Our production will reach 27 thousand megawatts by May
Yesterday at 8:31 am by Rocky
» Diagnosing the “most important” problems in the oil file between Baghdad and Erbil.. What is the rel
Yesterday at 8:30 am by Rocky
» The Iraqi Fiqh Academy and the Sunni Endowment issue a fatwa to pay Zakat al-Fitr
Yesterday at 8:28 am by Rocky
» The National Bank of Iraq continues its digital transformation by launching its new banking system a
Yesterday at 8:26 am by Rocky
» Parliamentary Investment and the Central Bank are discussing the housing initiative
Yesterday at 8:25 am by Rocky
» The Prime Minister announces the restart of 500 suspended projects
Yesterday at 8:23 am by Rocky
» Al-Barti assesses the region's employees: Your salaries are insured and will be paid after resettlem
Yesterday at 8:21 am by Rocky
» Iraqi-American discussions in anticipation of the Sudanese visit
Yesterday at 8:20 am by Rocky
» Iraq and Turkey hold meetings in Ankara to discuss technical issues related to the development road
Yesterday at 8:17 am by Rocky
» A government parliamentary agreement to support budget revenues and governorate allocations for inve
Yesterday at 8:16 am by Rocky
» Oil: The gas sector is witnessing great development
Yesterday at 8:15 am by Rocky
» A Kurdish-French agreement to develop trade and economic relations
Yesterday at 8:13 am by Rocky
» Exchange companies in Mosul demand that they be entered into the currency selling window
Yesterday at 8:12 am by Rocky
» Minister of Finance to the Czech Ambassador: Iraq enjoys a more attractive business environment and
Yesterday at 8:10 am by Rocky
» Iraq and Britain sign an agreement in the field of the stock market
Yesterday at 8:08 am by Rocky
» A new parliamentary meeting with the Minister of Finance to discuss these files
Yesterday at 8:07 am by Rocky
» A parliamentary committee discusses these files with the Director of the Projects Department in the
Yesterday at 8:06 am by Rocky
» Central Bank sales exceed $257 million today
Yesterday at 8:05 am by Rocky
» Parliamentary Finance and the Minister of Planning discuss governorate allocations and investment bu
Yesterday at 8:04 am by Rocky
» Planning: We are discussing with representatives of the World Bank the work plan of the Social Fund
Yesterday at 8:02 am by Rocky
» Parliamentary meeting with the Governor of the Central Bank and the Director of the Real Estate Bank
Yesterday at 8:01 am by Rocky
» Parliamentary Finance: The 2024 budget reached 228 trillion dinars
Yesterday at 7:57 am by Rocky
» Barzani "gives good news" to Kurdistan's employees: salaries, land, and loan exemptions
Yesterday at 7:57 am by Rocky
» Parliamentary Economy: The decision to raise fuel prices targets this class
Yesterday at 7:54 am by Rocky
» The President of the Republic: Iraq is an important investment environment
Yesterday at 7:53 am by Rocky
» From the accounts of Saddam's Republican Guard... Iraq returns approximately 7 billion dinars to the
Yesterday at 7:52 am by Rocky
» Al-Abadi: Muqtada al-Sadr did not leave politics.. He reached a dead end
Yesterday at 7:49 am by Rocky
» Nassif: The leaders of the framework abandoned Al-Sudani because of his recent successes
Yesterday at 7:48 am by Rocky
» Baghdad stresses the continued danger of ISIS and the importance of Washington's efforts to combat i
Yesterday at 7:47 am by Rocky