The way out of the impasse of Greece’s negotiations with its international creditors goes through early elections, according to sources close to the Greek government.
With talks with the country’s creditors practically stalled, the economic asphyxiation growing rapidly and the banking system increasingly struggling, it seems that Greek Prime Minister Alexis Tsipras has taken the decision of calling snap elections, with the use of lists. This means that Greek voters will vote for electoral conjunctions and will not be able to elect individual candidates.
Through the use of lists, Mr Tsipras hopes for the government to be liberated from radical elements in his party, that have opposed the implementation of any reform measures that could have appeased the creditors and thus released further European funding. The exclusion of hardline leftists from the Prime Minister’s lists and the subsequent formation of new political schemes will present the Greek people with the choice between breach and concession to the country’s European partners, giving the emerging government a new, clear mandate.
Such a resolution would be satisfactory for the international creditors, who have found themselves irritated by the contradictory statements and the unclear negotiating strategy of the Greek government. German Chancellor Angela Merkel would welcome the end of the new, ongoing Greek crisis, as it has been undermining the benefits of ECB’s QE program.
The euro area has now set provisions for the worst case scenario. Whatever emerges from the polls, it is now more prepared to face it than it was in 2012. It is now up to the Greek people to choose their country’s path. They will not be called to elect a government this time; they will be called to decide if they want to remain in the eurozone, or if they want out.