Greek drama is reaching the final act

Greece needs capital. Its EU partners should at least consider its refinancing proposal

Anti-austerity campaigners rally in Athens. Photo: Simela Pantzartzi / EPA

Greece is running out of money and other European countries are running out of patience. Both are running out of time. What happens in Greece and the eurozone can seem like a long way away from here (except, no doubt, to Greek readers). And certainly, the effect of the current crisis in Europe on the Gulf countries will be limited. But the Greek drama will be felt across Europe, whatever its outcome.

Start with the global financial crisis of 2008. This revealed some serious deficiencies in the way Greece’s economy was run. So high was Greece’s debt that it appeared the country would simply be unable to pay. The Europeans responded by offering billions of euros to bail out the country – on the condition that Greece impose complex austerity measures.

That was in 2010. But five years on, the austerity measures prompted the Greeks to elect a government determined to end them. The new Greek government wants – indeed, needs – more money from Europe. But it refuses to stick to the bailout.

Which brings us to this week. The Greeks need a bridging loan for a few months. The other European countries say they will only offer money as part of an extension to the bailout. For Alexis Tsipras, Greece’s new prime minister, that is politically toxic: he is enjoying sky-high approval ratings for taking a hard line against austerity. To accept an extension to the bailout, three weeks into his term, would be fatal. Hence, the stalemate.

There is still time, though not much of it. February 28 marks the date when the bailout expires. What comes afterwards will affect not only Greece, but the whole European Union. Both Spain and Italy, which have Greek levels of debt but a combined population 10 times its size, are watching carefully. If Greece leaves the euro, it could start a chain reaction.

An Arab prescription is hardly needed. But this newspaper would merely point out that European Union membership, like marriage, is for better and for worse. In the end, unless the eurozone countries or Mr Tsipras really want to provoke a Greek exit, a compromise solution will have to be found. It will be found much sooner without borderline threats and political posturing.