Searching for a Way Out of the Greek Crisis

Seven years on, most Greeks feel trapped in a maze. Seemingly, every possible exit rout has been explored, only to lead to a blank wall. Internal and external commentators translate that perplexity into a baseless desire for some external solution, for a deus ex machina whose intervention is repeatedly postponed.

This short note tries to sketch the source of the perplexity and to suggest that the usual reactions of simply waiting for something to happen threaten to make matters worse. This only makes the case for a well-meaning response of swimming against the current only more pressing.

Plus ça change, plus c’est la même chose

Events during the summer of 2015 bore an air of déjà vu. The initial gap between Greece and its partners was significant. The frequency of meetings increased as time (and cash) ran out, with little to show in terms of progress. The discussions were held at an increasingly higher political level, but the core of the discussions remained of a “technical nature”. At its climax, the Greek Prime Minister held a referendum whose two questions were incomprehensible for citizens. Then, the Greek government operated a complete U-turn, signing third Memorandum of Understanding (MoU) containing harsh(er) conditions. 

The Key Battles of the Greek Bailout Saga

Greece's dramatic bailout negotiations will soon be coming to a head one way or the other. Although the Greek government has been painstakingly throwing a veil of uncertainty and misinformation over its real financial and fiscal position, most pundits would agree that state coffers are running bare and that, absent an interim, piece-meal, or final bailout agreement, Greece will not be able to pay off the consolidated IMF loan tranches coming up at the end of June. The government's finances have been stretched to their limit by dint of an internal payment moratorium and a raid on the cash reserves of local governments and pension funds.

Stop the Cuts and Fund the Reforms

Greece’s economy and society are imploding. GDP has declined by almost 25% since the start of the crisis. Unemployment has tripled and stands at 25%, with youth unemployment twice that. Crime is on the rise and so are racist incidents. Ideologies of the extreme right and left are gaining significant support.