Whatever the result, the eurozone should not reject the voters’ verdict on Sunday but work with itIt is inevitably tempting to see Sunday’s general election in Greece as a make-or-break moment, which could determine the fate of post-crash economic austerity across Europe as a whole. Greeks could decide on Sunday to honour their commitments to creditors, pursue structural reforms and make further cuts in public spending. Or they may reject the conditions that the European Union, the European Central Bank and the International Monetary Fund have attached to the bailout programme, and demand debt relief and other changes to ease the impact of austerity. The outcome is being watched by the peoples and the governments of Europe, and by financial markets too.Some of the hopes and fears, however, may be overblown. The eurozone has stronger defence mechanisms than was the case when the financial crisis broke out, including the quantitative easing programme announced by the ECB this week. Most Greeks also want to remain within the EU and the eurozone. Alexis Tsipras, the leader of the leftwing Syriza movement, which is leading in the polls, has accordingly been trying to calm some of the worries in Brussels and, in particular, Berlin, about his party’s likely intentions. If Mr Tsipras needs to form a coalition after Sunday, further compromises may be necessary. Continue reading...
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