Wednesday, 11 March 2015

Greek choice of "unworthy policy or dignity" misses the true question = Greece won't live within its means

http://www.telegraph.co.uk/finance/economics/11458393/Eurozone-prepares-to-judge-Greek-reform-deal.html


Dismayed to hear the Greek PM Alexis Tsipras tell Germany's Der Spiegel: “If we were to hold a referendum tomorrow with the question:"do you want your dignity or a continuation of this unworthy policy,’ then everyone would choose dignity regardless of difficulties that would accompany that decision.”
Syriza campaigned to stay in the euro but renegotiate the austerity terms agreed by the previous Greek government. It is not doing well as the article makes clear.


The difficulty is that the longer there is no resolution to the Greek debt crisis the slower will be the Euro recovery - and it could even stall / go backwards. This will affect us in the UK. Sadly Mr Tsipras is simply wrong. The unworthy policy is him not coming up with a way to accept that Greece spends way more than it earns and does not pay its taxes etc. One could go on. The alternative is he leaves the Euro. He knows that is way worse because Greece with the Euro countries support is in a far better state than in the short term than Greece without that support - albeit Greece would be better in the longer term with its own currency. The problem is - the Greek politicians do not think long term.

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