Europe Should Reject Concessions To Greece

Because the Greek constitution has a provision which makes no sense at all, that new elections must be called for unless 60% of the parliament choose a new President (Then again it’s Greece, and few things in modern Greece (unlike ancient Greece) makes any sense at all), new elections were called for and the party that calls itself the Coalition of the Radical Left, better known by its Greek acronym of Syriza, has won the Greek election.

I analyzed their two key demands in a previous post and I stand by that analysis. I can only add that I both believe and hope that other European countries will reject their promises to the irresponsible Greek voters as the combination of debt writedown and deficit spending is unacceptable as it effectively amounts to a demand to receive foreign aid, which the Greeks have definitely made themselves unworthy of, by constantly being so irresponsible.

It should again be pointed out that it’s not like Greece have a good bargaining position. Though it has achieved a primary (excluding interest payments) surplus through the policies Syriza denounces, that surplus would disappear if Syriza’s radical left policies of deficit spending were implemented. And that would leave them with the position of having to ask someone to lend to them, which is not gonna, and certainly not should, happen if they just inflicted previous lenders with great losses.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s