Caving in Greece

No, this is not a travel-adventure post.

It looks like Greece’s governing Syriza Party has caved. Accepting €13bn of fresh austerity.

A note from the Guardian’s live blog at 13:29:

Syriza MPs have been telling our Helena Smith that the big no received in the referendum on Sunday was a “confidence vote” in Tsipras who like no other prime minister before now has the popular support to enforce such punitive measures.

In other words, what occurred last Sunday in Greece was not a policy referendum, nor was it a tool to give Greece more bargaining leverage to reject the European measures to which the voters thought they were voting a loud NO. Rather it was a plebiscite to bolster a weak domestic position. Which would have become far weaker, given the preferences of Greek voters had Tsipras led Greece out of the euro.

8 thoughts on “Caving in Greece

  1. I will give it a few hours. The Guardian also gave us the presidential resignation.

    The package described by the Guardian does not sound very different from the package rejected by the troika before the referendum. For Greece to cave at this point would be surprising after the US, Japan, France. and the president of the European Council all ganged up on the EU austerity caucus yesterday.

  2. I don’t know-simultaneously, the Germans are coming under increasing pressure to cave on debt relief, or at least debt adjustment-the IMF are starting to pur on the pressure, Polish PM and European Council President Tusk has called on “all sides” to make concessions-even the Irish finance minister has stated that in principle his govt would have no objection to a capping of interest rates or some other adjustment that would make repayment easier.

      • I am waiting for the headline: ‘Chinese stockbrokers outscare Swabian housewives’.

      • It might just be that the greater part of Syriza have fewer taboos than the the German government, and that debt adjustment was always the goal. Without growth Athens will never get a proper say on it economic and social policy, and its austerity whatever way one turns. Just perhaps not endless austerity?

        This has very interesting imolications for the left in general. For example, any social democratic economic programme that’s based on “we’ll issue debt to pay for it” should be treated with a lot of caution. The revenge of Philip Snowden?

  3. I guess we can now agree that Greece caved. We can also the terms of the EU North ultimatum were harsher than those demanded by the Austro-Hungarian ultimatum to Serbia in 1914 and the treaty of Versailles itself.

  4. Pingback: The dismantling of SYRIZA? | Fruits and Votes

Leave a Reply

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

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

Google photo

You are commenting using your Google 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 )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.