Wednesday 11 March 2015

Syriza's Crash Strategy

The recent increase in tensions between the Greek government and Germany is not accidental. Only today, a minister announced that they might seize the assets of the German institute in athens against the money Germany owes greece from war reparations and the famous coercive loans (private lawsuits). Actually it seems that Greece does have a legal point on the coercive loan but very little on the war reparations claim. In any case, Syriza's point is not to get any money out of Germany but to invoke the European public's sympathy towards greece and to force Germany into a mistake.
Syriza knows that Germany can crash Greece both financially and out of the Euro. And they are provoking Germany in making this move. The basic logic is that Greece’s weakness is its strength.
Germany’s strategy is to slowly starve the Greek government of cash and thus cause the greeks to turn against Syriza. Syriza knows this which is why they are provoking Germany.
Syriza has managed through some very clever communication tactics and Finance Minister who is a communication war machine to focus all the anti-european anti-german movements in Europe behind them. This has not gone unnoticed in governments around Europe who fear that a showdown between Germany and Greece would spell trouble for their own administrations. It would be devastating for Greece but they don’t care much about this anyway.
Syriza on the other hand do see that they are on an exit path because the economy is in tatters. They also have huge internal party problems and know that there is no way they can survive. They thus see an early crash course as the only possible way out. Money is running out with or without Chinese help on the t-bills.