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Greece’s Fate in the Euro Zone Still Murky

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While supporting Greece remaining in the euro zone, Syriza has said that it would not honor the terms of the bailout deal and stoked fear not only through European finance leaders but global markets. As The Atlantic’s Matthrew O’Brien writes, a New Democracy victory is even more “crippling” than a Pyrrhic victory. Syriza now gets to “watch the two big mainstream parties discredit themselves following Germany’s austerity orders”; New Democracy faces a “Sisyphean task” and Syriza is, in many ways, just where it wanted to be, in the position to say, notes O’Brien, “I told you so”:

There are two nightmares for Europe. The first is that Syriza takes power in a few months and forces a Greek exit. Once it became clear that monetary union isn’t irrevocable, depositors in weak countries would want to move their euros to strong countries. Bank runs would hit Spain and Italy overnight. It would take a huge dose of liquidity to put that financial fire out. As in, trillions of euros. But there’s a second danger. It’s that Syriza foreshadows future “anti-euro” parties in Spain or Italy. That too would be checkmate for the great European experiment. Those countries are too big and have too much leverage for Germany to bully. They are not, as the Spanish prime minister put it, Uganda.

The question now remains if New Democracy and Pasok can work together and renegotiate the bailout with Europe and the International Monetary Fund.

Samaras has said that he will reverse some tax increases and restore cuts to pensions, though he has not indicated where the funds will come from. Greece, unless it receives the next installment of bailout fund, will be bankrupt and out of money by mid-July — that is, by next month.

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Greece & the Euro: Drachmageddon Can Wait (Video)

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Photo taken in Syntagma Square in Athens by Jack Zalium

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10 comments

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7:40AM PST on Nov 27, 2012

A Villager in Spain was laughing at the English for paying their Local Taxes.

His town hall is now padlocked and chained shut as they didn't have the tax money to pay their electricity bill and have had to be declared bankrupt. Ha Ha.
Silly so and so's

7:35AM PST on Nov 27, 2012

Well said Sarah H.

The Greeks didn.t pay their taxes, their officials didn't pay their dues to their Government.

They have played in the sunshine long enough.
Don't give them the money without strict supervision

1:53AM PDT on Jun 25, 2012

I really don't appreciate the comment about the whole Greek nation being animal haters and that we should be left to die. I am Greek and I live in Greece. I volunteer at four different animal shelters, my salary is now 700€ because of the crisis yet I give 250€ for animals in need of help! I foster strays so they can find forever homes, friends, relatives and people I just know help animals in need all the time. Of course we too have idiots that don't care about animals. But should I say that all Americans are animal haters because that scum Michael Vick tortured and killed so many animals and organised dog fighting rings? Or maybe should I say that all the country's in the world should die because some morons in there country hit, neglect or kill animals? I think not. That would be very small minded of me. So I would appreciate if people would target the hate to each individual that acts wrongly and not on a whole nation. Thank you.

5:12AM PDT on Jun 23, 2012

We'll just have to wait and see.

4:34AM PDT on Jun 23, 2012

Ian F - you have it spot on. 100% correct.

What Germany couldn't win by war (control of Europe), they are bit by bit winning through manipulation. The new bank bailouts being talked about for Spain and Italy will also come with strings attached - they will have to hand over fiscal control of their countries to Brussels (for Brussels, read Germany). The unelected beaurocrats in Brussels/Germany already dictate most political policies and laws in Europe, and nation states have to obey, no chance of even discussing them in parliament, they simply have to be enacted into law by each state, there's little left for nation states to decide for themselves. 'Bye 'bye democracy.

9:32AM PDT on Jun 22, 2012

It may be tough in the short run, ok maybe even in the middle term, but if the Greeks go back to the Drachma, as they should have done 4 years ago, the snowballing effect and future disaster will be avoided.
Even now, it's not too late. Of course it will be tougher now than if they initially had left the € long ago when the debt ratios weren't so high.
If you share a currency with people like the Germans, watch out! The Germans will out- discipline you, sell you their Mercedes and BMWs, lend you money to pay for it, tell you your debt ratios are too high, lend you more money to pay the debts. Then external credit rating companies downgrade your debt, making it even more expensive to pay back the debt. Bingo! you need a bail-out and your entire economy backfires so the Germans can swoop in and "save" you by bying up little pieces of your bankrupt economy, whole islands at a time. You're left with nothing but are grateful for the bailout...
Spain is next. The good thing about the future Spanish bailout is that at least it will result in greater autonomy (I hope even independance) of Catalunya from whom the Spanish govenment has spunged 9% of GDP for decades without compensation.
Long live the Drachma and the Pesseta!

7:43AM PDT on Jun 22, 2012

I could care less about Greece, let them starve and disappear from the face of the earth. From all the animal hating nations in the world GREECE is the absolute more hateful of all of them.

4:48AM PDT on Jun 22, 2012

This is where we will end up if we don't change the direction we are going and cut spending! Like Greece, we have too many programs that we can NOT afford! We keep borrowing boatloads of money from China which hates us and what we stand for. This is just stupid! Wake up before it's too late!

3:20PM PDT on Jun 21, 2012

thanks

12:15PM PDT on Jun 21, 2012

thanks for sharing

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