Don’t give up on politics!

MADRID | June 18, 2015 | By Luis Martí | The negotiating tactics of the Greek government can only be understood against the backdrop of an impossible set of electoral promises –impossible, that is, unless the government gained access to an unlimited inflow of financial resources from abroad at no charge. This not being the case, President Tsipras has to act within a constrained framework. 

Shcauble and Varoufakis at the Eurogroup

Gambling on Greece

MADRID | April 27, 2015 | By JP Marín Arrese | The Euro-group meeting in Riga ended in bitter acrimony, Greece’s main creditors expressing their dismay at Varoufakis’s refusal to table credible reforms. They voiced deep mistrust on the chances the Hellenic government might escape from a full-fledged bankruptcy. Both Schäuble and Draghi seem ready to throw in the towel, thus triggering speculations on B plans involving a covert Grexit. 

Jean Tirole

Europe at a crossroads

April 6, 2015 | Guest post by Jean TiroleEmbroiled with the Greek crisis, European policymakers will soon have to step back and reflect on the broader question of the future of the Eurozone. Before calling for an exit or, on the contrary, for further integration, it is worth pondering over the consequences of each option.

Tsipras and Varufakis

Greece in dire distress

MADRID | March 17, 2015 | By JP Marín ArreseThe cliffhanger tactics applied by Varoufakis have backfired. He has lost precious time in his bid to baptise the barbarous Troika under the more Christian and palatable name of Institutions. 

Grexit no

Greece and common political sense

LONDON | Sigrún Davíðsdóttir | Forget economics, politics is key to understanding the Eurozone. The cries of  “Grexit”  lately have mostly been a repetition of an earlier discourse: in February 2012 Citi’s economists Willem Buiters and Ebrahim Rahbari coined the term “Grexit,” by July 2012 estimating its likelihood to 90%. Cheered on by the media, economists have taken over the debate of the Eurozone which is why much of it has been such a futile exercise: it is not economics, which ties the Eurozone together but the political determination of its leaders to make the euro work. With political will likelihood of any exit is 0. Ergo, Grexit is as unlikely now as it has always been in spite of the EU brinkmanship. One route Greece seems to be exploring is a tried and tested one: the “bisque clause” from 1946.

No Picture

Fanciful notions of Greek tragedy ignore practicalities of realpolitik

MADRID | By Sean Duffy | Last week´s Der Spiegel article envisioning an “inevitable” Greek withdrawal from the euro in the event of a Syriza win in the upcoming elections has yet to have the desired effect, with Alexis Tsipras´ left-wing party continuing to hold a small but significant lead over the ruling New Democracy party in the polls. The piece, attributed to unnamed government sources in Germany, sparked a flurry of speculation and doomsday analysis across international media.