Europe

Red Alert: Operation Grexit Accomplished?

In a Kafkaesque moment which saw the Greek nation being asked to vote on whether their government should accept a proposal that no longer officially exists, it looks like Greece’s fourteen year membership of the Eurozone is about to come to an abrupt and chaotic end. The choice of Greek voters to take the well-worn path of refusal and just say ‘No’ will, according to Tsipras, enable the country to regain its dignity and pride. But it remains to be seen what the true cost of this temper tantrum will be. Prior to today’s result, GDP forecasts for Greece had already seen major downgrades as a consequence of the uncertainty caused by protracted negotiations as well as from the negative impact of the recently-imposed capital controls. But it now looks like that’s just for starters with the main course yet to come.
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Europe

“Quack!” Grexit, Stage(d by the) Left

The curtain is about to fall on the tragicomedy that has constituted Greece’s five-month-long negotiations with its creditors. And it’s a real cliffhanger. The hero of the piece, a would-be messiah with the manner of a demagogue, having led his people to the very brink of the abyss, suddenly turns to ask for their blessing as he guides them over the edge. Suicide by Democracy.
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Europe

The Greek Tragedy Unfolds: Desis, Peripeteia, Anagnorisis, Lusis…Catastrophe 

The end-game approaches. Or, more accurately, the curtain is about to fall on the charade that has been played out on the European stage over the last five months. It has been a curious spectacle, a blend of game theory (so-called) and defiance, with Finance Minister Varoufakis betting that the opposition would crumble faced with the prospect of Grexit and Prime Minister Tsipras channelling popular anger at what is seen as the attempted subjugation of Greece by its creditors. Whilst the majority of Greeks (still) approve of their government’s negotiating tactics, the cost in economic terms has been significant: Greece’s economy, after tentative signs of revival last year, is back in recession, forecasts for the primary surplus have been cut by more than half and deposits have fled the country, with the ECB having to make good the system shortfall via the ELA mechanism.

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