A lifeline to a bankrupt country - Greece reprieve

WHETHER or not Greece makes the best use of the deal sanctioned, in the broadest terms at least, by the European Union, the European Central Bank, and the International Monetary Fund remains to be seen but it is certain that the country, its newly elected government and its embattled and often demeaned population will not have too many more plausible opportunities to bring some sort of stability to their society and their economy.

Irrespective of conflicting political views — and barely concealed cultural and personality clashes — this arrangement seems a defining a test of EU solidarity. This rescue package is a real test of its most important characteristic, one that must be both flexible and robust.

This overarching requirement may be reflected in the vagueness of some facets of the programme but it is hard to imagine that any assessment of its implementation, in a year or two, say, would be so free-range or so imprecise. Concrete results will be expected on foot of profound reform and, unless they are realised, EU solidarity will be sorely tested, Greece’s place in the euro family questioned, and ever more desperate measures — such as a financial ménage à trois with European debtors and Russia, say — will be put on the table.

The potential offered by this flexibility has already been recognised. Eurogroup president Jeroen Dijsselbloem, speaking at the the European Parliament’s economic and monetary affairs committee yesterday, referenced Ireland as an example of how political, social, and monetary imperatives can be served by an imaginative response — albeit one that observes the primary targets involved. He said Athens could put its “own political stamp” on the bailout but it must respect the programme’s main objectives.

It is just possible this tragedy may be a great opportunity for Greece, a country with debts of over €320bn and a society hollowed out by unemployment, especially among young people, and dramatically reduced living standards.

The two headline objectives are combating tax evasion and tackling corruption. These are obvious challenges but whether a society almost inured to these ways can find the determined gumption needed to break the habits of generations remains to be seen. However, even the most devil-may-care Greek must realise that taxpayers in European countries that simply would not tolerate tax-dodging and petty corruption on a scale seen in their country have all but exhausted their patience with institutionalised corruption.

It is not hard to imagine that Syriza, a hard-left group by our standards, has the determination to confront tax-dodging plutocrats but it may be harder to hope it has the determination to tackle the low-level, petty corruption that greases nearly interaction between citizens, business, and government departments.

Greece and the EU are at a crossroads. Let us all hope that this opportunity is grasped and that Greece makes significant progress in meeting the troika’s targets because if it does not its current woes may, in time, be seen as tolerable.