Greece finally clinched a three-year bailout worth $95bn after parliamentarians in Athens backed the deal, and after a meeting of eurozone finance ministers in Brussels approved the plan following six months of bitter recrimination that almost saw Greece leave the eurozone. There was a sense of relief and happiness in Europe, and relief in Greece too. So what was all the ado about? Was it worth it? Why the fierce opposition from Prime Minister Alexis Tsipras in the beginning which fizzled out to the surprise of Greeks as well as non-Greeks? It might all sound a bit weird and a costly exercise, but the fact is that the latest bailout agreement is a natural corollary of all that we have witnessed between Greece and its creditors. What we have seen is not a capitulation of Tsipras and his Syriza party, which came to power on a promise not to genuflect before the creditors, but his evolution and evolvement, a coming to terms with the ground reality, a giving way of rhetoric to reality and finally, an admission of the harsh truth that a bailout deal, however destructive, is far better than the next available option – an exit from the European Union.
The bailout deal has comfortably eliminated any possibility of Greece leaving euro in the future. It’s true that the Syriza party is angry. Tsipras may have secured parliament’s backing by a comfortable margin but he did so thanks to the support of the opposition, not of his own leftist Syriza party, nearly one-third of whose 149 MPs either voted against or abstained. The rebellion by Syriza hardliners, furious at the betrayal of the party’s anti-austerity principles, left Tsipras short of the 120 votes – two-fifths of the 300-seat assembly – that prime ministers need to show they command a majority and could survive a censure motion.
Early elections are now a near certainty and could come as soon as next month. But Greeks have learnt their lessons and are likely to say YES to the bailout. The anti-austerity camp has weakened considerably with the split in the Syriza party. Even if the hardliners are re-elected, which is a remote possibility, it’s nearly impossible for them to get better terms from the creditors. Leaving the euro is an option, but Greeks are unwilling to consider it an option.
Analysts argue that Tsipras will call a snap election before the punishing terms of the new bailout make themselves felt. Interestingly, reports say the prime minister still enjoys great personal popularity for having at least tried to stand up to German and eurozone austerity demands.
Crises often have a habit of resolving themselves after going through their full cycle•
Greece finally clinched a three-year bailout worth $95bn after parliamentarians in Athens backed the deal, and after a meeting of eurozone finance ministers in Brussels approved the plan following six months of bitter recrimination that almost saw Greece leave the eurozone. There was a sense of relief and happiness in Europe, and relief in Greece too. So what was all the ado about? Was it worth it? Why the fierce opposition from Prime Minister Alexis Tsipras in the beginning which fizzled out to the surprise of Greeks as well as non-Greeks? It might all sound a bit weird and a costly exercise, but the fact is that the latest bailout agreement is a natural corollary of all that we have witnessed between Greece and its creditors. What we have seen is not a capitulation of Tsipras and his Syriza party, which came to power on a promise not to genuflect before the creditors, but his evolution and evolvement, a coming to terms with the ground reality, a giving way of rhetoric to reality and finally, an admission of the harsh truth that a bailout deal, however destructive, is far better than the next available option – an exit from the European Union.
The bailout deal has comfortably eliminated any possibility of Greece leaving euro in the future. It’s true that the Syriza party is angry. Tsipras may have secured parliament’s backing by a comfortable margin but he did so thanks to the support of the opposition, not of his own leftist Syriza party, nearly one-third of whose 149 MPs either voted against or abstained. The rebellion by Syriza hardliners, furious at the betrayal of the party’s anti-austerity principles, left Tsipras short of the 120 votes – two-fifths of the 300-seat assembly – that prime ministers need to show they command a majority and could survive a censure motion.
Early elections are now a near certainty and could come as soon as next month. But Greeks have learnt their lessons and are likely to say YES to the bailout. The anti-austerity camp has weakened considerably with the split in the Syriza party. Even if the hardliners are re-elected, which is a remote possibility, it’s nearly impossible for them to get better terms from the creditors. Leaving the euro is an option, but Greeks are unwilling to consider it an option.
Analysts argue that Tsipras will call a snap election before the punishing terms of the new bailout make themselves felt. Interestingly, reports say the prime minister still enjoys great personal popularity for having at least tried to stand up to German and eurozone austerity demands.
Crises often have a habit of resolving themselves after going through their full cycle•
