Last week a group of very high profile liberal economists, Stiglitz and Kugman included, wrote an open letter to German Chancellor Angela Merkel to let her know that right now the Greek government is being asked to put a gun to its head and pull the trigger’. The past week’s events have not changed that position.
Greece went very close to pulling that trigger when it went to Brussels with a set of proposals for economic reform that many saw as capitulation and a betrayal of the referendum ‘no’ vote on whether the country should accept austerity measures the EU, ECB and IMF demanded in return for further financial assistance.
The third bailout deal has since been struck, forcing the Greek government into a climb down that forces it to renege on all is pledges to accept no more austerity, in order to keep Greece within the Euro zone. Agreement was reached only on monday of this week and already, two days later, the labour minister has denounced the terms and reported that the conditions are so tough, so rough that it poses a perhaps an impossible political task for the Prime Minister.
To make matters worse, former finance chief Yanis Varoufakis (V-Fak), who resigned after his numerous bust ups with EU leaders who could not accept his refusal to kow-tow to the Brussels diktat is back in the mix. With public opinion urging him to form a new anti – EU party, V-Fak was his usual outspoken self in an interview broadcast on Australian ABC radio. He said it would be a near impossible task for Prime Minister Tsipras to sell the Troika’s latest attempt to crush Greece to the national parliament, let alone the people
Hear the broadcast In English) or read a transcript