Greece must at all costs avoid the economic and geopolitical disaster that would come from being cut off from Europe. A compromise is possible. Our partners and lenders could lower targets for primary surpluses, come up with a viable solution to extend the Greek debt and introduce a new supervisory mechanism. The prime minister will have to take back pledges and implement reforms that will meet with resistance within his party. He will also need to persuade his supporters that canceling privatizations and investments will turn Greece into an international no-go zone.
Our foreign partners and lenders need to become more flexible and the Greek government needs to swallow the bitter pill of compromise.
The situation is above parties and personalities. Everyone, the opposition included, will support a shift toward realism and logic. The cliff is right there. Let’s do our best to avoid it.