Alexis Tsipras won the election to become Greece’s Prime Minister based upon the voters’ belief that he would be able to negotiate with the beleaguered country’s creditors and get out of their financial crisis without having to meet the harsh demands that would cripple the country for decades. Now, those demands are starting to come to a head and no deal has been reached.
European Parliament President Martin Schulz warned Tsipras that if they do not reach a deal very soon they would pay a worse price. “Time is running out and the consequences would be dramatic,” he said.
The G-7 meetings are getting underway and the future of Greece will be a primary topic. It is likely that the group will discuss ways to convince both the leaders and citizens of Greece that they really have no other choice. Either Tsipras will have to break some campaign promises so early in his term or he could plunge Greece into a catastrophic meltdown that will remove them from the euro zone and make it impossible for the country to recover. It will be utter turmoil.
The hard part for Greece is that meeting the demands of their creditors would mean putting the country in a virtual standstill at best and a nosedive at worst. It will not be able to fund many of the public initiatives that not only serve the country but that employ a good portion of the population. The proverbial rock and a hard place doesn’t quite capture the predicament the country is in. If they take the deal, they could sink the country. If they don’t take the deal, there will be repercussions for the world’s financial markets that will affect everyone.
As Reuters is reporting:
The impasse, which is weighing on financial markets and could hit the global economic recovery, will hang over a Group of Seven leaders’ summit that Chancellor Angela Merkel will chair in southern Germany from Sunday.
Read more on Reuters.
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