REVIEW & OUTLOOK The Case for Letting Greece Go The risk now is political contagion from rewarding non-reform.
Greece’s main contagion threat now would be if it is bailed out again without reform. Athens wants creditors to reward Greek voters for electing a government committed to dismantling the reforms Greece needs. If creditors allow Athens to increase government spending while reversing labor-market liberalization and privatizations, they’ll encourage anti-reform movements elsewhere. Spain’s left-wing Podemos party has polled well since Syriza’s Greek victory in January as Spaniards consider whether it might offer an alternative to painful reforms, and the party won 15 seats in the regional parliament in Andalusia last month. Ireland’s Sinn Fein is gaining support for its anti-reform platform, and it invited a Syriza government minister, Euclid Tsakalotos, to its recent party conference. Italy has its own anti-reformers in the Northern League and the Five Star Movement. full: http://www.wsj.com/articles/the-case-for-letting-greece-go-1428535900 _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
