Within the last week it certainly, as described here, looks as if Greece blinked and the German dominated EU wins. However, Greece still has a card left to play in this game: The economic nuclear option. This essentially entails a ‘Grexit’ that will possibly cripple the EU and set a precedent for other member nations. One should also consider that this would have an economic ripple effect on the entire world economy, not just Greece and the EU. This basically opens Pandora’s Box.
Brussels: Just a month ago, after being propelled to power by a wave of anger at Greece’s economic miseries, Alexis Tsipras declared his Syriza party’s election victory the start of a Europe-wide revolt against austerity. “Europe is going to change,” he said before setting off on a tour of European capitals to rally support for a more relaxed new direction.
The “anti-austerity revolution” proclaimed by Syriza and its fans elsewhere, however, has now fizzled, its passions doused by the political reality that leaders in the rest of Europe do not want to join or, more importantly, finance the Greek-led revolt. Continue reading