The wolf cries echoes once again over Greece and Europe and have been for a long time now. Indeed, it seems that every time a due date for payments crawls closer Europe is reminded over how little money there is left in the olive blessed nation.
The sickness does not seem to cure from the cash injected remedy, instead it is a prolonged CPR method that is yet to show any tangible results.
Alexis Tspiras, prime minister of Greece, makes a fine job promising change and reassuring that negotiations with debt providers are almost done.
The actual financial leaders of said providers probably shakes their head and stairs at the obvious elephant in the room, Syriza. Yes the Greek drama has been one of the most fascinating and interesting product of the euro collaboration downsides the financial world has seen.
Unacceptable left wing demands are constantly funneled from the conservative party and it seems that every opportunity to reach an agreement are met with the finger by pointing at the election promises that won the prime minister seat in 2014.
The raw communistic thinking from parts of Syriza ties Tspairas hands behinds his back and to reach a “non-favourable” agreement with ECB and IMF would tear the party apart. But to leave the situation as it is is of course unthinkable. Greece needs every cent from the 240 billion euro CPR remedy, but the nation won’t see any of that without restructuring the whole financial institution.
It is important to understand that the euro does not stand or fall on the Greece economy. The banks as well as the euro countries economy are much better prepared for eventual Greece exit now than 3 years ago.
Financially the Eurozone should be able to cruise through a crisis. Politically they might be in for a storm. Nobody knows exactly the procedures for an exit. One thing is certain, they probably did not account for such an event in the formation of the currency collaboration in the late 90’s.
Furthermore, it is clear that the leaders of the financial institutions are getting somewhat tired of the constant negativity coming from Athens. The constant struggle to seek common ground in negotiations are straining on both the leaders as well as the taxpayers. Media portraits the Greek people as unwilling to pay and would rather paint black headlines of the struggle rather then Tspiras lack-lusting attempts to present a positive picture.
Two days ago, everyone was sure that Greece would honor their upcoming payment to IMF of 300 million euros. Tspiras said it. Lagarde said it. Everyone believed it. But today Friday the 5 of June, Greece sent in a request to put all part payments into one giant one due in the end of the month. Perhaps to save time? perhaps to indicate the dire situation? Perhaps to play a tactical game? It is worth to mention the fact that the last time a nation asked for such a thing was Zimbabwe during their crises in the 1980s.
But financial aid is just a layer of quick fixes in order to save the people of the nations. Pensions and other salaries for government employees relies on a country that’s financially stable.
The actual problem which ECB and IMF can’t fix is the big and corrupt government mechanism where the common tradition for the men in power is to scratch each other’s backs without repercussions. This tradition should be openly talked about in order to ventilate decades of frustration and disappointments.
It is not until then Greece will have a chance to stand on its legs again. Crawling on its knees for years without any progress is devastating for the country and its people and the ultimate solution might be to leave the Euro. A fresh start so to stay, filled with chaos, uncertainty and a destabilize community for years to come.
One thing is certain, it is not the last time we hear the howling wolves in the Mediterranean.