Little over a month ago, Greek Prime Minister Alexis Tsipras was still claiming that his party’s electoral victory last January had put an end to bailout programmes. A few days ago, he told the Greek people that a ‘No’ vote in the Greek referendum would lead to a deal with Greece’s creditors within 48 hours. More than 48 hours after the ‘No’ vote, there is no deal and his government has formally requested a third bailout programme.
This request coupled with Mr. Tsipras’ decision to replace controversial Finance Minister Yannis Varoufakis might produce the impression that the Greek government’s position has shifted closer to that of its creditors and that an agreement has become more likely. Sadly, this is not the case. Since the Greek government decided to abandon negotiations with its creditors to hold a referendum, the distance between the Greek government’s position and that of its creditors has grown greater.
The Greek people rejected the last offer that Greece was made before their government abandoned negotiations with its creditors. Additionally, the Greek government’s request for a third bailout programme has raised the issue of debt relief yet again. Greece’s creditors, however, have indicated that a third bailout programme will require Greece to accept stricter conditions than those included in the offer that the Greek people rejected. As far as debt relief is concerned, German Chancellor Angela Merkel was perfectly clear: ‘There can be no question of a haircut’.
Given that the distance between the Greek government and its creditors has increased, an agreement seems unlikely. Even if the Greek government agrees to stricter conditions than those that the Greek people have rejected, ratification of such an agreement by the Greek parliament cannot be guaranteed. In fact, the large margin by which the Greek people rejected the last offer of Greece’s creditors and the fact that their offer was rejected in every single constituency suggest that the seats of those MPs who might vote against stricter conditions are safe.
An agreement without stricter conditions might be possible, if Greece’s EU partners decided that ensuring the irreversibility of Eurozone integration is more important than enforcing compliance with Eurozone rules. Ratification of such an agreement by national parliaments cannot be guaranteed either. Opposition to additional financial assistance to Greece runs at about 70% amongst the German public. The seats of those MPs who might approve such financial assistance would not be safe.
Several months ago, then SYRIZA MEP Manolis Glezos had the integrity to apologise to the Greek people for his role in creating the ‘illusion’ that SYRIZA’s electoral victory would put an end to bailout programmes. Mr. Tsipras should follow his example. Not only has his government requested yet another bailout programme for Greece, but it also seems to have placed itself in a position, from which an agreement on a third programme seems unlikely.
Kyriakos Moumoutzis is a Lecturer in European and International Politics at King’s College London.
The post Mr. Tsipras owes the Greek people an apology appeared first on Ideas on Europe.
A lot will be written about today’s vote in the European Parliament on Trade Committee Chair Bernd Lange’s own-initiative report on TTIP. In the immediate aftermath of the vote, we noted that:
The European Parliament’s President Martin Schulz followed the Rules of Procedure to the letter, though he frequently had to read directly from the rules to explain his decision to his fellow parliamentarians on the voting priority of amendments. Schulz brought to vote Amendment 117 — that of Socialist & Democrats (S&D) member and International Trade Committee rapporteur Bernd Lange — to amend the paragraph about Investor-State Dispute Settlement (ISDS). Speaking of ISDS, it is important to…
The most contentious point was the Parliament’s position on Investor-State Dispute Settlement (ISDS). Using a rhetorical Houdini-like escape act, the Parliament adopted a position which simultaneously allows MEPs to say that they have ‘killed’ ISDS while supporting work to develop a system for settling disputes between investors and states. The paradoxical amendment will prove difficult for many minds. It will result in reams of analysis between now and the end of this year. Most importantly, it could provide a pressure-release valve that creates space for constructive debate. Undoubtedly, the crafting and advancement of amendment 117 by Schulz and Lange, both part of the Socialist and Democrats (S&D) group, has consequences for internal cohesion as…
It is even clearer that the political groups fragment easily, as we have noted in the past. There will be many simmering disagreements that may impede intra-group collaboration even outside of trade policy. The fragmentation inside parties is not the only problem. Between groups, rancor has increased as smaller groups attempt to remain relevant while they are not always necessary coalition partners. As a result…
The heated exchange between EP President Schulz and two members of the Greens group — Yannick Jadot (FR) and Reinhard Bütikofer (DE) — over the application of the Rules of Procedure revealed the confrontation. The applause and boos from the deputies provided political theatre rarely seen in sleepy Strasbourg. If only the dome of the hemicycle really did glow brighter as the volume in the chamber increased. Energetic words about TTIP will fly between the benches and the President’s desk again, because…
Let us not forget that the European Parliament had already in 2013 issued its opinion on TTIP when it adopted the resolution of former International Trade Committee Chairman Vital Moreira. And, once agreed, the Treaty of the European Union requires the Parliament’s consent to the final text of TTIP. That will be an even more passionate debate.
The EUNAVFOR-Atalanta military operation was launched in December 2008 to help deter, prevent and repress acts of piracy and armed robbery off the coast of Somalia.
Greece's Alexis Tsipras, left, with Germany's Angela Merkel on Tuesday night in Brussels
Greek authorities got their final dash to find a bailout agreement before the weekend formally underway on Wednesday by submitting a simple one-page request to the eurozone’s €500bn bailout fund, the European Stability Mechanism, for a new three-year programme.
Under the timetable agreed with EU leaders at Tuesday night’s summit, the request letter is something of a formality. The real details are due on Thursday, when Athens will submit their “prior actions” proposal – the detailed economic reforms that they will pursue under a new, third programme.
Still, the letter (which we’ve posted here) includes some interesting clues as to where Athens is headed. First of all, Greece is seeking a three-year programme and not a two-year bailout that was requested last week. The International Monetary Fund has estimated a three-year programme could cost as much as €70bn.
The letter also suggests Athens is willing to “immediately implement…as early as the beginning of next week” some of the things that creditors were demanding during negotiations on its old €172bn rescue, which expired June 30 – including tax reforms and pension system overhaul.
This appears part of an effort to quickly release short-term “bridge financing” so that Athens can repay the €1.5bn it still owes to the IMF, avoid a default on a €3.5bn bond due the European Central Bank in less than two weeks, and pay another €3.2bn ECB-held bond in August.
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