Europe, Greece and the chicken game
5 mayo, 2015
Germany and Greece are taking a pulse of power in which Greece is preset to lose. Russia appears in the game ready to support Greece. But how honest are Russia’s intentions in this game?
The game of chicken becomes popular because of the film Rebel without a cause. The main character of the film took part in a race where there was only one rule: the first one who turns off and avoids the crash of the two cars against each other, losses and is considered a chicken. The current situation between the European Union and Greece could be related to the chicken game. Greece and Germany, who are holding the representative role of the European Union opinion, are under a competition. But, none give in to their proposals. The pressure that Greece feels does not seem as a weak State to the International Community, which has led him to add another player to the game, Russia.
Since the leftist political party, which is called Syriza, won the Greek elections on January 26 of 2015, Alexis Tsipras became the Prime Minister of Greece. Tsipras’ anti-austerity campaign is based on the renegotiation of 1 billion of euros, which were lent by Germany. Greece is willing to avoid the payment of its debt and Germany is not willing to be flexible.
At the European level context, the president of The Eurogroup, Jeroen Dijsselbloem, proposed to Greece to accept the European conditions (better said Germany conditions) of the loan. Therefore, more flexibility could be introduced at the payment process. Greece refused to accept the offer proposed by Jeroen. Speculations about the imminent exit of Greece from the European Union soon appeared. In a result, Greece sought economic support in Russia. Although, Russia isn’t in the European Union, it is trying to create an organization with the same operating mode as EU and leaded by the States that formed the Eurasian Union. However, Russia holds a large economy due to petrol and gets weak political relationships since the Ukrainian conflict started, Russia become the perfect ally to bother Germany.
Delving in the essence of this issue, Greece is stuck in negotiations with German leaders. They want Greece to sign before negotiating the conditions, but Greece would not do it unless Germany gives in. Such debt raises to almost 1 billion euros to the IMF and nearly 7 billion euros to the ECB.
On the other hand, Tsipras met Putin with the intention to cover its debt. Despite this, Greek leader’s intention in the meeting was to raise pressure on Greece’s creditors.
“We have repeatedly declared our disagreement,” he said. “This is our point of view that we constantly express to our colleagues in the E.U. We don’t think that this is a fruitful decision. It’s practically an economic war.”
Nevertheless, Greece wants to continue in the euro-zone.