In a bid to re-negotiate the terms of its bailout, the interface between Greece and Germany is turning into unscripted theatre where passion and hyperbole have replaced economics and logic.
Germany is the single biggest donor country, among other European states, which is negotiating a solution aimed at either keeping Greece within the European Union (EU) or sending it hurtling towards isolation.
The conversations, however, have been bogged down in emotion and history, leading to both parties believing that they are being blackmailed by the other. The core issue — Greece’s survival and economic well-being — is now threatening to spiral into a political battle between the protagonists.
Even though Greece’s cries for justice — which is financial compensation for atrocities committed by Germany during the Second World War — seem to have found resonance within certain quarters in Germany itself, it is imperative that Greek Prime Minister Alexis Tsipras park those issues to one side and come up with economic reforms that could spur the release of bailout money.
The clock is ticking and Greece will run out of cash with debt payment, salaries and pensions being due later this month. Therefore, terms for a settlement need to be negotiated fast.
Tsipras must implement reforms within the existing bailout programme as they are his only hope for getting funds.
Stalling will weaken Greece’s case for survival within the EU. Tsipras must follow the path laid out by the creditors and this will require structural reforms, solid finances and a functioning administration.
