HELLAS’ DEFIANCE

Athens’ foreign policy reflects its economic worries

H.A.L. Fisher’s History of Europe published in the early 1930s became a classic on the subject. Even more so, the first sentence: “We Europeans are the children of Hellas.” Which comes to mind when watching the current crisis between Greece and its EU partners as well as the IMF over a bailout for the country’s debt crisis. At the time of writing this, it is still an open-ended affair. But a temporary exclusion from the euro is one of the — unprecedented — options being considered.

The EU has one of the most sophisticated and all-embracing institutional and political mechanisms to be found in the international scene.

Even more so when you add to that, the particular provisions of the EU member states that joined the Euro and are part of the Eurogroup. So some observers say that it is difficult to believe that it is not able to cope with the Greek crisis. And argue that the real problem is to be found elsewhere. Politics — they say — is the burning issue.

The Tsipras effect

They remark that Hellas has challenged its EU children. And Hellas will now have to pay the price of its defiance, which has to do with something new,and quite unprecedented in the EU political mainstream. Namely, a Prime Minister like Alexis Tsipras.

His party, Syriza, is not your usual, moderate, centre-left European Social Democratic political creature. Tspiras and his party have a clearly left-of-centre tradition which shows in the policies they implement.

Although Greece’s current debt problems and bailout negotiations are not new, Tsipras’ way of dealing with them is far from traditional. When he was inaugurated in early 2015, debt was — of necessity — at the top of his priorities. But the negotiations were far from easy.

So when, on June 25, the European Commission, the IMF and the European Central Bank put forward their list of bailout conditions, the Greek government decided to submit them to a referendum, which was called for last Sunday.

Tsipras and his party clearly pushed for a ‘no’ vote.

Which was the overwhelming 61 percent result that was celebrated not only on Athens’s streets but also with congratulatory messages from some foreign leaders. Cristina Kirchner was one of them.

If the Greek government was trying to use the referendum to strengthen its negotiating position, it clearly failed.

So much so that less than one week later it put forward to Parliament a number of laws implementing all the European conditions. The bad news came when it became clear that the roles had reversed and Europe had become the reluctant negotiator.

Conflicting agenda

The language being used by both sides is quite revealing about the different — and conflicting — political agendas.

The European negotiators plainly say that they do not trust the other side. And that a bailout should be backed by adequate guarantees that the Greek government will comply with its commitments.

The Syriza politicians argue that the “Northern European elites” and the bankers, which have “complete control” of Europe, want to get rid of them and their prime minister. And they might have a point.

Hellas’ defiance of its EU children goes beyond economic policies. In fact, Tsipras’ foreign policy does not make many EU leaders happy.

‘dead end policies’

In the six months that his party has been in government, Greece has made a number of friendly gesture towards Russia.

It condemned the EU sanctions imposed on Moscow over the Ukraine issue. Just before visiting Russia the Prime Minister said that economic sanctions are “dead end policies.” And the government is courting Gazprom — the Russian hydrocarbons company — investment in Greece. Which seems quite logical if one takes into account the fact that Russia supplies the country’s oil.

To add to the EU’s worries, Greece is also increasing its ties with China. Like in the case of Russia — but with better chances given the latter’s deteriorated finances — investment is being sought. In addition — and this might be the most sensitive point — there are rumours about Greece trying to sell its government bonds to Tehran.

Interestingly enough, people in Montevideo who do not like CFK’s government are quick to associate Argentina with Greece. They jokingly point out to Axel Kiciloff’s tie-less dress code, shared with the Greek prime Minister. But when the joke is over, they remark that Greece seems to be seeking the same partners as Argentina and Venezuela. And they do not mean it as a compliment.

@andresfederman

CREDITS: BUENOS AIRES HERALD