Advertise On EU-Digest

Anual Advertising Rates

9/22/15

Greece: Thomas Piketty Responds To Surprise Greek Election Result - by Thomas Piketty

In the wake of a surprise re-election of Alexis Tsipras and Syriza, Thomas Piketty discusses the need for a more active approach from European leaders when it comes to the Greek question – and for a eurozone parliament to be established.

Europe need to make up for lost time. Until now, Europe has obstinately refused to talk seriously about restructuring Greece’s debt. That was what caused the downfall of the last government.

Europe had in effect implied that it would reconsider the debt as soon as the Greeks managed to balance their budget with a small primary budget surplus – which meant Greece would have more revenues than public spending. But when the Greeks appealed for help in December 2014, Europe said “no”.

That is what ultimately opened the path for Alexis Tsipras.

And the situation continued. Between January and July 2015, Europe refused to reopen talks. Now it’s September and the new support package that was discussed this summer has led to the further postponement of debt negotiations. If Europe insists on repayment, there will be fresh crises and the problem will not be resolved.

Europe has other problems to tackle. There is the migrant crisis and the wider economic situation. Europe, Germany and France can’t exist in a permanent state of crisis. Europeans need to adjust their position. And for that to happen, France needs to have more courage – others too. Perhaps the elections in Spain at the end of this year will change things. All these elements can combine to influence majority politics in Europe when it comes to the Greek question.

Read More: Thomas Piketty Responds To Surprise Greek Election Result

No comments: