Grexit Daily News – 24 June 2015

grexit daily news

24 June 2015  —  Damned if you do and damned if you don’t

Varoufakis finally sent a comprehensive set of measures to the Eurogroup, and what a horrible set of measures they are. As the bulk of the adjustment has been passed onto taxation, rather than expenditure reduction (protecting state-sector wages and pensions) the package is indeed distinctly recessionary.

To add insult to injury the IMF is said to reject the proposal today, on the basis that it is recessionary… The IMF… Recessionary. Surreal, once again.

Why is the package so hard? One could argue that this is because 5 months have been lost haggling, with the result that the economy deteriorated, so that more effort is needed to ensure that the target of a (even reduced) primary surplus is achieved. This however is a little like the post-communist reform effort where causation for horrible decisions was impossible to determine. Are governments taking dreadful measures because they have been asked, or are they doing it to themselves to achieve targets set by their creditors?

The end result is that this is a package that is clearly antithetical to what Syriza stands for. A package that may get a deal with the creditors, but it satisfies no-one. As Samaras noted (I hate to quote Samaras, but this was apt), Syriza promissed Thessaloniki (programme), but ended up giving Thessaloniki away.

An election becomes now even more necessary. The Greeks are coming closer to the horrible choice of austerity within Euro, or austerity without Euro.



5 thoughts on “Grexit Daily News – 24 June 2015

  1. Pancho says:

    Really looks like the creditors don’t want any deal besides a full-scale surrender. The only consequence can be a rupture, meaning a default on the creditors. This may or may not be followed by a Grexit, but in either case, this won’t be Game over for Greece. It will rather be a serious defeat for the European pro-austerity establishment, including hard-liners.

    Earlier or later, Greece will flourish. And more and more Greeks seem to be ready for taking the hard route of modesty in sovereignty. See the latest poll data:


  2. Rupture is good. If Greece wants to grow again it will have to eliminate the four henchmen which held it back: The possible Grexit, the economic collapse, the over-indebtedness, and the Troika induced policies of primary surpluses, which to Greeks must surely look like reparation payments.

    That can only be apart from the current disasterous arrangement.

    Next step, perhaps:


  3. Evening Update:

    To say that I am disgusted does not come close to describing how I feel for yet another –no deal- Eurogroup. It seems that everyone now is bent on disaster. It feels like those 80s nuclear war movies where the President is sitting in the bunker thinking: “We need to retaliate and bomb them back to the Stone Age, even though we know they are doing the same to us”.
    Syriza has alienated everyone, resulting in Tsipras achieving 150 days of solitude. He has even alienated his own supports by putting forward a recessionary package. The Troika has stomped on, spat on and then shot in the head the idea of Europe as a progressive force; any concept of solidarity and sense of common purpose is gone. Shame to all.


  4. Evening Update (2)

    See the FT for Troika counter-proposal here:

    The creditor proposals may make the plan less ‘growth-killing’, but harder to implement. Also, they do look a little like they are going through a list of things that can make Kamenos go ballistic and cause a government crisis. The Troika wanted to see ANEL replaced by the likes of POTAMI anyway (and this would be for the best).


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