Leader of left-wing SYRIZA, Alaexis Tsipras sent a letter to the highest officials of European Union and European Central Bank. In his letter Tsipras stressed in his letter that the results of May-6 elections “politically de-legitimize the Memorandum of Understanding, a loan agreement that failed to meet its own targets.” While he asks for a re-examination of the framework of the whole strategy, he does not openly insist for a complete re-negotiation of the MoU. The politician underlined that the “internal devaluation” [cuts backs in wage sand pensions] leads to a humanitarian crisis.
In a letter to European leaders Thursday, Tsipras said the election result left Greece’s bailout commitments devoid of “political legitimacy,” but stopped short of demanding that the program should be scrapped and debt repayments halted.
Tsipras said the cutbacks have failed to address the country’s problems, are “destroying” the recession-bound economy and threatening to create a Greek “humanitarian crisis.”
“We must re-examine the entire framework of the current strategy, as it not only threatens social cohesion and stability in Greece, but also creates instability for the European Union itself and the eurozone,” he said, in the letter to EU President Herman Van Rompuy, European Commission President Jose Manuel Barroso and European Central Bank chief Mario Draghi.(AP)
“The common future of European people is under threat of these disastrous choises,” Tsipras concluded. (Tsipras’ letter in Greek )
But German Finance Minister Wolfgang Schaeuble said Thursday that there was no way around Greece sticking to agreed austerity measures if it wants to stay inside the eurozone — although he acknowledged that it was a tough sell for any new government. “It’s an extraordinarily strenuous demand, to make the adjustments in Greece while staying in the common currency,” he told reporters in Berlin.
just a question. what will happen if the bureaucrats will say “you’re out!” and the greek government will say “just f**k off” and continue using the Euro as the currency? what will change? you can’t print euros anyway, you don’t really have a say in the ECB, so what the practical implications will be?
practically they cannot kick one out. one has to be kicked-out himself, and thus from the EU, not the euro. no governm cannot use euro then, because as no printing impossible, soon there will be no euro to use. theoretically and practically impossible.
Why impossible? Greece can’t print euros now, and nor will be able if out of the euro. the currency she gets can only come from exports and foreign investments and this is remain if in or out of the euro zone. there are examples of other countries that paged to the $ or moved to use $ (back and forth), so it is possible.
the euro bank notes will finish ….
They were already gone… isn’t it the current crises? The idea is to bring them back, and they can’t realisticly brought back without a default..
Interesting point, Ron. The Germans etc. seem to be saying they can just throw Greece out as and when they wish. They have the power to, as they could just stop accepting Greek euros. The justification is harder, unless Greece started printing lots of euros, devaluing everyone else’s money.
That’s not correct, Brit. We’re saying, “tit for tat”: If the Greeks break the contracts, we will stop the payments. And since that would mean that the Greek government will be bankrupt, with no chance to fund the state budget, they would be forced to return to the Drachme, finance their expenses with freshly printed banknotes, and live with high inflation, like in the past (up to 25% inflation rate). For most people, that wouldn’t be any better, the hardships would just be a bit different.