Greece versus Eurozone

What Sophocles can teach European politicians

Ein Beitrag aus der Spreezeitung

Here is the Sophoclean challenge for our politicians: true statesmanship is finding the courage and having the intelligence to be wise without experiencing tragedy – to see the big picture, to have the guts to change one’s mind if needed, to think ahead, and to create space for compromise. Can Eurozone decision makers live up to that challenge? A comment by Haridimos Tsoukas, Research Environment Professor of Organization Studies at Warwick Business School.

Presenting his new governments’ plans before the Greek parliament last Sunday (8/2/2015), the newly elected leftwing Prime Minister Mr. Tsipras appeared defiant. Greece will not seek an extension of the current bailout program, he said. The bailout, agreed between the ‘troika’ (EU, ECB and IMF) and Greece, has been a “toxic mistake” right from the start and its consequences for Greek society disastrous.

This is a high risk strategy. The 172 billion Euros bailout program expires on 28/2/2015 and, unless it is extended, the last (still unfinished) review of the bailout cannot be concluded and, therefore, Greece will not receive the last tranche of 7.2 billion euros owed by the troika. This is money Greece badly needs, since, without it, it will be unable to finance itself.

Given the high risk involved, why has Mr. Tsipras adopted this strategy? He has a reason. He aims to force creditors to renegotiate the entire framework of the bailout agreement between Greece and its creditors. He does not want to make a move within the current framework. He wants to change the framework itself. He wants to force a paradigm change.

Will he succeed? Weiterlesen…

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