On Fri, Jul 17, 2015 at 5:05 PM, raghu <[email protected]> wrote:

> On Fri, Jul 17, 2015 at 6:10 PM, Gar Lipow <[email protected]> wrote:
>
>> Without leverage, the EU could impose more austerity conditions in return
>> for a Grexit. Syriza's original proposals made the same wort of sense. The
>> compromises they offered made even more sense from the EU viewpoint. But
>> the EU did not take any compromise because they had the power not do. It is
>> just maximum class warfare.
>>
>
>
> There is one important difference between Jan and now: back in jan, the EU
> elites had two strong political reasons to take a tough position against
> Syriza: (1) Syriza represented radical left-wing forces that the EU elites
> have a natural distate for, and (2) they needed to make an example out of
> Greece to keep the other PIGS countries in line. In the event of a Grexit,
> these powerful political reasons would not exist.
>
> So these compromises make much more sense in a Grexit scenario than they
> did back in Jan.
>


No, there would still be a powerful political reason. They might want
;Grexit, but Grexit with austerity. A *successful* Grexit that resulted in
prosperity for Greece would be the exact bad example they were trying to
avoid.

>
> Still you may very well be right: they may very well opt for maximum class
> warfare. We will find out soon enough.
> -raghu.
>
>
>
At the moment they have won a huge battle. There is a whole bunch of
draining of Greece they now have the legal right to that they have to
actually carry out. So we won't see anytime soon unless they encounter new
resistance.

>
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