Hard choice for the Greeks

Greek Prime Minister Alexis Tsipras wants to break his country’s deadlock with its creditors by holding a referendum on July 5, which will decide whether Greece stays in the eurozone.

Having won elections on January 26 on an anti-austerity platform, which runs contrary to the conditions the EU wants to impose on his country in return for a bailout, he is caught now between a rock and a hard place; either way he moves he, and the country, stand to mostly lose.

So it makes sense that he should turn to his countrymen to decide the course to follow; that is how democracy works.

What does not make sense is the prime minister’s urging Greeks, on Wednesday, to reject an international bailout deal, wrecking any prospect that Greece could repair broken relations with European Union partners before the Sunday referendum that may decide Greece’s future in Europe.

In a television address, Tsipras said Greece was being “blackmailed”, making thus clear the fact that he will not delay the vote, call it off or urge Greeks to vote “yes”.

“A ‘no’ vote is a decisive step towards a better agreement that we aim to sign right after Sunday’s result,” he said, apparently showing no concern about the fate of the Greek currency or the repercussions of an exit from the eurozone.

But a “no” vote with no temporary assistance forthcoming will mean that banks continue to stay closed and possibly default on more payments.

The government would be under pressure to reintroduce the drachma, or some other temporary currency, to pay salaries, but the currency cannot be expected to maintain value, making it impossible for Greece to pay its euro-denominated debt.

Before Wednesday’s defiant stance, the Greek prime minister had agreed to accept most of the creditors’ demands for taxes and pension cuts, and asked for a new 29 billion euro loan to cover all debt service payments in the next two years.

His erratic behaviour leaves many puzzled, making him a bit of a mystery. If it weren’t so serious, it might make for some entertainment, but Tsipras’ performance should not be a matter for those trying to figure out the personality of the prime minister. It will decide the future of his country.

Granted, the situation is difficult, but with goodwill and common sense, the gap between Greece and the EU can and should be bridged. 

European Council President Donald Tusk summed it up in a tweet: “Europe wants to help Greece. But cannot help anyone against their own will. Let’s wait for the results of the Greek referendum.”

Sunday we will know which way Greece goes.