Greek crisis can shake up the whole of the EU – Hufvudstadsbladet

Greek Prime Minister Alexis Tsipras thinking during a joint press conference after a meeting with the Austrian Chancellor at Maximou hall in Athens on 17 June 2015. Greek Prime Minister Alexis Tsipras warned European creditors the 17 June that their insistence on cutting down on pensions would overturn the people’s hope. Photo: Lehtikuva / AFP PHOTO / ANGELOS TZORTZINIS

It is not just about economics when Greece’s future in the EU will be decided during the summits the next few weeks.
  - If there is a solution shaken the entire EU cooperation on, says SEB’s Chief Economist Robert Bergqvist.

Metaphors “is now going train” “eleven fifty-five” and “knife against the throat” has been used frequently in recent months about the Greek drama, but it is only the coming week as they get really justified, it believes Bergqvist. At the end the country will pay a loan to the International Monetary Fund (IMF) of EUR 1.5 billion, money that the Greek State hardly has. And at the end of the month are also at the EU support package or the safety net out and not extended it must Greeks fend for themselves.

– They do not. We’ve been talking about deadlines long but the closer the end we go, the more acute becomes state.

Greece must back

Formal decided the issue in summits of the week . On Monday, the euro zone finance ministers, who in record time interrupted their meeting last Thursday, and later also meet heads of government. No one can object to the concept of chicken race in this context, therefore, that any of the parties should give up and fold down.

– There must be Greece. Aid to the country has actually been quite extensive in recent years, with 240 billion euros in rescue loans, a debt reduction of 65 percent of GDP and a nödkreditlina from the ECB (European Central Bank) at 85 billion euros. The world has really set up for Greece.

– The Greek government has to back down from their promises to the people that there is an end to austerity, there is no other way.

headwinds for Europe

Prime Minister of Greece Alexis Tsipras has provided new, “mutually advantageous” proposal for a solution to the crisis, announced his cabinet on Sunday. The proposals should have been made by telephone to German Chancellor Merkel , French President FrancoisHollande and European Commission President Jean-Claude Juncker . No details of the contents revealed.

It is not just about economics, but just as much about politics, says Robert Bergqvist . Should the negotiations end with the collapse and that Greece leaves the euro and by extension perhaps also the EU initiated a development that can have unexpected consequences. It is not simply that Spain and Portugal could be next in line, it applies to many other countries where there are currently anti-EU and populist parties.

– Should Greece leave the Union as all realize that there are a return ticket to Europe. Today there is a great pressure in many countries for greater economic-political independence and it blows a public opinion-rate headwinds for the entire EU project.

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