Greek government has little to lose

<p>Comments from Alexis Tsipras have sparked a row with Spain and Portugal.</p>

The Greek government is not losing its nerves, for all the pressure others exert on it. Tsipras has promised to present sweeping reforms by May but, for the time being, he has unveiled a short-term plan against poverty, offering free fuel and food. It amounts to a mere 1.2 billion but is likely to bring some hope for those suffering most from callous recession and the merciless austerity.

What would happen should Tsipras refuse giving up his pledge for restoring Greece’s self-rule and national pride? Besiegers confidently believe he will not stand up for long before offering full-surrender. Yet, they might prove utterly wrong, as Greece has little to lose.

As the dealine aproaches, creditors are likely to lose their nerves even if they received ample comfort from Varoufakis in London. Huge turmoil in financial markets would ensue, as the prospect of a Grexit materialises plunging the Eurozone into utter shambles.

Underestimating Greece’s resilience might prove an awful blunder. Dragging it to its knees could backfire sending shock waves to other vulnearble countries. Not to mention its potential for crushing all hopes for recovery in Europe. The current tug-of-war should be brought to an end, the sooner, the better. Otherwise, we are bound sufffering its awesome spill-over effects.

About the Author

JP Marin Arrese
Juan Pedro Marín Arrese is a Madrid-based economic analyst and observer. He regularly publishes articles in the Spanish leading financial newspaper 'Expansión'.

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