Sueddeutsche Zeitung: The Varoufakis is… right!

Sueddeutsche Zeitung: The Varoufakis is… right!

Athens, June 17, 2015/ Independent Balkan News Agency

By Spiros Sideris

The Greeks do not deserve a “haircut” of the debt, but there is no other way, mainly for economic and political reasons. That is something the Germans should be aware of, writes Sueddeutsche Zeitung in central article.

Commenting on the statements of Yanis Varoufakis for the Greek debt, the German newspaper estimates that nothing can happen without a “haircut” of the debt and in that the Greek Finance minister is right. Only if creditors waive part of their claims, only if part of the debt is deleted, will Greece manage to stand on its feet.

However, not even this will be enough, says the Sueddeutsche Zeitung, if the Greeks and their politicians do everything as before, if they still try to maintain a massive public sector and if they continue to fail to collect their taxes, then the country will soon present the same problems that brought it to this location.

In the next few dramatic days there are going to be put on the table two issues: whether the Greeks will have the opportunity for a new beginning and if this new beginning will be on terms Athens will be forced to accept.

Alexis Tsipras and Yanis Varoufakis must therefore be clear up with a clear, binding and reliable way, what they are going to do to consolidate the budget, reduce bureaucracy and to collect more taxes. For their part, the eurozone countries must stop quibbling, to see reality and to rid Greece of a part of the debt. This of course requires detailed negotiations, as the German government knows better than anyone.

That’s because Germany already was acquitted four times a part of its debts during the last century, something that really benefited the country and something everyone who condemn Greece, pushing for its exit from the monetary union, forget. This was one of the many conditions for the economic miracle of Germany; the other was the Marshall Plan, a US financial aid program through investments, something that today Greece needs from the other Europeans.

We can learn a lot from that era to resolve the Greek crisis. Neither Germany had its debt reduced four times because it deserved it. Only because it was financially strong. Greece does not worth a haircut, but there is no way to avoid it – for economic and political reasons. The alternative would be a disorderly default.

Even this though would result in Athens never repaying its debts – it’s just that the process would be much more chaotic, the Sueddeutsche Zeitung concludes.