Saturday, June 27, 2015

Will Greece give in to Troika manipulation? Strauss Kahn's proposal and Varoufakis' explanation

The purpose of the Troika's last offer and threats to Greece is clear: it wants to divide and rule.

The creditors of Greece hope that by offering 15.5 billion dollars in exchange for prolonging the "rescue" of Greece by another 5 months, they will succeed in dividing Syriza and rip the Tsipras government of its already vanished glamour as an alternative to Troika's policies.

Will Tsipras succeed in countering this strategy with a referendum?

The answer will depend on a number of factors including the wisdom, endurance (stamina) and sentiments of Greek citizens.

Proposal by Dominique Strauss Kahn

Former IMF managing director Dominique Strauss Kahn proposed on Saturday a "radically new direction" in the negotiations between Greece and its creditors:

"Greece should get no more new financing from the EU or the IMF but it should get a generous maturity extension and significant nominal debt reduction from the official sector (OSI). Insisting on a frontloaded fiscal adjustment in the current economic environment is both economically and politically irresponsible. Providing more assistance to simply repay existing official creditors is simply insane." (underlining by me)  

"Forcing the Greek government to cave in would set a tragic precedent for European democracy and could set in motion an incontrollable chain reaction." (underlining by me)

Yanis Varoufakis explained what happened

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