Was Greece referendum call a daring game of brinkmanship?

Michael Steininger, CS Monitor, 04.11.2011

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Greek politics, an obscure affair more often than not, descended into turmoil today. Prime Minister George Papandreou faced further defections of lawmakers from his socialist PASOK party, cabinet ministers openly turning against him, and calls for his resignation from within his own party. Amid the chaos, though, some observers spotted the chance of a new start for Greece. […]

If political opponents in Greece can agree on such a course, it will give the country a chance to regroup, have early elections in a few months, and stay in the euro, says Janis Emmanouilidis, senior policy analyst at the European Policy Centre in Brussels. “Going back to the drachma would have catastrophic consequences for Greece: huge unemployment, high inflation, banks collapsing, public and private debt skyrocketing. Given these prospects, you wonder why politicians in Athens still quarrel.”

But, says Mr. Emmanouilidis, for the first time it seems that Greeks truly believe that Europe could drop them. “It’s been a wakeup call, and there’s a chance they will draw the right conclusions.”

For the entire article see here.


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