Wednesday, February 11, 2015

Greek financial crisis

As expected, the negotiation between Greece and Germany regarding its national debt up to 315 billion Euro faced a hard rock.

The ruling Syriza party administered by Tsipras as the Prime Minister withdraw the previous austerity policy immediately after winning the general election. Tsipras began to negotiate with EU nations, requesting them to postpone or compromise the return of the debt. He also mentioned the war crime committed by Nazis to gain the reparation from Germany.

Sydney Morning Herald: Greece wants $236 billion in German World War II reparations

My past entry: Anti-austerity won the election in Greece

Tsipras keeps an optimistic and overbearing attitude. Despite his attempt, however, the market has a cold eye on Greece. Moody's, a famous ratings agency, downgraded some banks in Greece

The Guardian: Greek banks hit by downgrades as PM vows to strike deal to stay inside euro

It seems clear that the statement by Tsipras is unrealistic. On the other hand, Greece has a reason to have to stop further austerity. Suicide rate in Greece has been raised for several recent years. Researchers estimated that 500 people were killed by fiscal austerity. The Prime Minister cannot ignore the fact as the administrator of a nation.

The Guardian: Austerity in Greece caused more than 500 male suicides, say researchers

My past entry: Suicide in Greece

At a glance, it seems ridiculous to listen to the claim of Greece, as this crisis was caused by Greece itself. However, if the EU keeps the strict attitude upon Greece, several risks will emerge, such as terrorism, rising of mafia, and mass refuges. These troubles must involve other countries in EU. Considering this, it is possible that the bullish attitude of Tsipras is not a bluff, despite the media reports. The EU has to be deliberate to deal with the problem.

The Guardian: Greece is playing to lose the debt crisis poker game


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