If one thing became clear from the double crash of Greek bonds and the stock market exchange last week it is that the lack of trust and credibility continues to be a serious problem in Greek politics.
The illustrious markets reacted almost automatically to Samaras’ “slip-up” of an early exit from the bailout program and they obviously considered Tsipras’ even more aggressive proclamations, causing 8 billions worth of damages to Greek titles. They almost doubled the interest of Greek bonds: for five-year bonds the rate exploded from 4% to 7.5% in one week.
The message to the Greek political leadership was harsh and clear: we do not trust Greece and we will not lend without an adequate monitoring and surveillance mechanism.
In other words, without trust and credibility the country cannot make a single step towards independence and autonomy.
The weight of the previous debt and bankruptcy is such that so long as our country does not reclaim its lost credibility, it will be treated as a weak link, as another “black sheep” in the international financial system and will face similar crises at the first opportunity.
It became evident that trust and credibility are concepts which cannot be bought or borrowed. They are conquered after a hard struggle, prolonged effort and, of course, political stability.
However if Mr. Samaras learned his lesson, as it appears from his immediate acceptance to negotiate the so-called “precautionary credit line” and if Mr. Tsipras realized how much hard work he has ahead of him, then the Greek people must also realize that the lies are over and that they cannot delude themselves with fairy tales.
There are no chosen people in our age, nor is anyone willing to give away any fields of prosperity without effort and sacrifice.
The upcoming developments will confirm this.
The banking union that will occur in early November will be a major structural change and will have a decisive effect on the political and financial life in Greece.
For the first time in the country’s history the supervision of the banks and by extension the flow of the economy will be passed on to a third party, who will not give in to the whims of the Greek government, nor will they be guided by the organized domestic business forces.
The banks themselves will be obliged to adopt certain models, to observe common European rules and appoint professional and demonstrably capable administrations. If they deviate from all this they will lose access to cheap funds and their shareholders will have to pay the price for any bad choices.
It’s high time we understood. The safety of the euro and the European acquis of financial stability demand a different kind of effort and different kind of political behavior.
Antonis Karakousis
Originally published in the Sunday print edition
