The Greek Crisis and the Need for Constitutional Reform in the Eurozone

The latest act of the Greek tragedy is at play. Following the elections that took place in Greece in January 2015, new negotiations have started between the Greek anti-austerity Government lead by Syriza and the pool of European and international creditors over the terms of the bailout agreement. Swept into power by a clear electoral mandate to end the austerity policy of the troika and to redress the humanitarian crisis, the new Greek government has clashed with its creditors, who conditioned the award of financial support to the adoption of domestic economic and social reforms. The Eurogroup, the informal grouping of minister of finance of the Eurozone member states, has offered the forum in which negotiations between the parties has unfolded. However, bargaining between Greece and its peers has quickly turned into a bilateral confrontation, with the tense relations between Greek Finance Minister Varoufakis and German Finance Minister Schäuble capturing the attention of the mass media.

The evolution of the Greek tragedy is still ongoing. After the Eurogroup soundly rejected initial proposals by Greece for a marked policy shift, on 20 February 2015 the Greek government obtained from its peers a 4-month extension of its current bailout agreement, to give time to the Greek authorities and the pool of creditors to agree on a new detailed plan of economic reforms. Subsequently, Greece presented on 5 March 2015 a more specific list of reforms to be implemented as a condition for financial support, which met only with halfhearted approval by the Eurogroup, and negotiations are continuing (under the shadow of the ECB oversight on the liquidity of Greek banks) both at the technical and political level with the aim to agree on a re-financing plan before the summer ...

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