Current Developments in Greece

by Vasilis Giavris - Lawyer & Political Scientist

More than a year after the IMF/Eurozone loans where entered into, Greece’s lenders are threatening to put a stop on the next tranche of funds due to be released to Greece in June 2011. Greece’s lenders maintain that the economic and policy conditions and targets imposed by the Eurozone members and the IMF (and agreed to by Greek government) have not been adequately fulfilled by Greece. These include specific reforms in cutting budgetary costs, drastic reduction of pensions, reduction of public investment, full scale privatizations and tax law amendments.

Faced with growing internal discontent from their citizens some lenders are refusing to acquiesce to the release of the June tranche of the funds unless a unanimous agreement/declaration can be made by the major political parties in Greece guaranteeing the strict implementation of the loan agreements and the measures they contain. Indeed, there is growing talk that no further funds will be provided unless Greece, by way of security, mortgages specific Greek assets and land. 

Yesterday, the leaders of all major political parties were summoned by the President of Greece to discuss the current developments and to reach a consensus on how to respond and deal with the existing crisis. However, no consensus was reached.

The next few days/weeks are crucial. What is certain is that an enormous amount foreign pressure has been placed and will continue to be placed on Greece. The threat of the IMF/Eurozone not providing any further funds will gather even further momentum. According to the Greek Finance Minister, without the provision of these funds in June, Greece will “shut shop” and will be unable to pay its debts, including paying pensions and wages to its citizens.

Greece must not submit to foreign demands and threats that challenge the very nature of the Greek democracy but it must also not neglect the current politico-economic realities. As such, Greek political leaders, more then ever, have a moral obligation to put aside their differences and political manoeuvring and adopt a post-partisan approach to the current crisis. A post-partisan approach that, having noted the current politico-economic realities, gives priority to the interests of the average Greek citizen and the future of the Greek nation and not the interests of politicians, creditors and various pressure groups.

Greece requires strong, rational and responsible leadership. Leadership that is capable of negotiation and making all the hard, but right, decisions necessary to safeguard the interests of Greece and the average Greek citizen.