Πέμπτη 28 Μαρτίου 2024
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The political readout of the Eurogroup decision

The political readout of the Eurogroup decision

A broader political and social consensus will be needed in order to avoid backpedaling

Beyond the economics and numbers of yesterday’s Eurogroup, there is the political readout of yesterdays’ decision.

What are the repercussion on the Greek government, on the opposition, and more generally on the political system, which over the last years has been linked to the debt and to bailout programmes?

The fate of every government is determined by numbers, and so it will be for the coming years.

Alexis Tsipras may don a tie – as he said he would do when the memorandums are over – exploit for communications purposes the positive decisions in yesterday’s agreement, and place his bets on the “historic decisions”, on the exit from the memorandums, and on the end of the crisis in Greece.

All that will be judged from the prism of  the quality of daily life, which is the biggest test of political decisions.

The main opposition party will seek to downplay the positive directions given by the creditors and to blur the meaning of the debt relief agreement.

Both the celebrations and the reservations are legitimate, in the framework of political disputes, but where does one go from here?

What will Messrs Tsipras and Mitsotakis do?

The current prime minister must make a commitment that whether he remains in office or is voted into the opposition, he will follow the programme that he accepted, and not hit the streets to stone the next government over measures that he accepted.

Austerity will be protracted and future fiscal measures may be painful. Consequently, a broader political and social consensus will be needed in order to avoid backpedaling.

The current prime minister and his party will play a significant role in this.

New Democracy

Kyriakos Mitsotakis and New Democracy, on the other hand, have a duty to see the positives and analyse the negative elements of yesterday’s compromise.

If he wants to or believes that he will take power, then he is obliged to present a programme that is based on Greece’s commitments, but will also permit growth, be outward looking, bolster businesses, and lure investment.
In any event, New Democracy – either as government or in the opposition – does not have the right to undermine the positive elements of an agreement.

Everything will be determined by political developments in Greece.

The country needs stability in order to regain the trust of the markets.

If it does not achieve this, then it is certain that dark days will return.

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Πέμπτη 28 Μαρτίου 2024