Greece has voted, but is there a choice for the new government?
This is the (updated) translation of an article that was issued January 25, 2015 on flassbeck-economics. We intend to publish one article in English every week to allow more readers to follow closely our analysis of global and European events.
The people of the oldest democracy in the world have finally spoken. The Greeks want to radically change the economic and political course of their country. Now that SYRIZA has the majority, the stage is set for policies that effectively dismantle restrictions in public expenditure, wage and pension cuts, hasty privatisations and much more. The question now is how these new policies can become reality. The old policies, which failed completely, were part and parcel of formal agreements between the Greek government, the Troika and the international creditors. Can the new government change course and, if so, how?
It is extremely unlikely that the members of the Troika will change their minds and agree to a fundamental change. The experience of the last forty years of creditors‘ domination by the International Monetary Fund (IMF) around the world proves that no one in Washington and in the developed countries that support IMF policies cares about democracy if it has to adopt a so-called structural reform program. [...]