The victory of Alexis Tsipras’s Syriza party in Greece’s snap election on Sunday is the latest in a remarkable series of events in that country. It would seem extraordinary that the Greek people have reelected Mr Tsipras, who resigned as prime minister a month ago, on a platform so radically different to the one he successfully took to the electorate in January. Back then, he vowed to defy the austerity measures being forced on Greece by its European Union partners as a condition of a bailout enabling it to manage its huge debts. This month, he went to the people defending his decision to agree to serious belt-tightening in exchange for an €86 billion (Dh357bn) rescue package, and he received a mandate to implement further austerity policies.
Mr Tsipras has moved from the far left of the political spectrum towards the centre, although he has not carried his entire party with him. Internal opposition to the most recent bailout deal led to his resignation as leader and to this latest poll.
While Mr Tsipras can claim a renewed mandate, these remain desperate times for Greece. On top of its internal problems, it is facing an influx of Syrian refugees. Greece cannot afford to continue to take out loans just to pay the interest bill on previous borrowing. It needs to generate serious income, and that will involve economic reforms that will inevitably mean further unpopular measures such as wage freezes and cuts, government spending cuts and tax increases. From the result of Sunday’s election, it would appear that the electorate accepts this.
Whether Mr Tsipras can do enough to meet the country’s commitments, which include a payment of €3.2bn to the International Monetary Fund due by the end of the year, remains to be seen. There is a growing feeling in Germany and some other EU countries that Greece should be left to fend for itself. Surely, though, there must be a compromise position between the much-vaunted “Grexit”, in which Athens defaults on its debts, abandons the euro as its currency and leaves the EU, and yet another round of bailouts to pay the interest on an ever-growing principal debt. A mechanism that allows the country to repay what it can, then start again with a financial clean slate – albeit with strict conditions on its furthering borrowing – would seem to be a better outcome both for Greece and Europe as a whole.
The challenge for Mr Tsipras, who has to this point been the ultimate Teflon politician, is to prove that he is best placed to deliver the best result.
