Exit Greece: Overview : SBS Insight

Overview

Greece is entering a new phase of uncertainty.

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Greek citizens have lashed out at austerity measures, punishing the political parties that support the tough conditions. Yet at the same time, the majority of Greeks say they want to stay in the Eurozone.

Power-sharing talks have collapsed, triggering a new round of elections and increasing doubts that Greece can make enough reforms to prevent the Eurozone – the world’s largest currency union – from breaking apart.

The drawn-out deadlock and the prospect of an anti-austerity party gaining power are making markets around the world jittery.

In this episode, Insight crosses live to Greece, Germany and elsewhere in Europe, bringing in politicians, economists and ordinary citizens to talk about the state of play, whether the tough economic medicine is the right approach, and whether the backlash in Greece could spread to other countries.

Producers: Jane Worthington and Fanou Filali
Associate Producers: Scott Mitchell and Hannah Meagher

Meet the Guests

George Papaconstantinou

George Papaconstantinou was Greece’s Finance minister from October 2009 to June 2011 and is from the PASOK party. During that time, he negotiated the terms and oversaw the implementation of Greece’s first bailout package with the European Union and the International Monetary Fund. The UK-trained economist is seen as a reformer, pushing spending cuts and liberalisation in key economic areas, sometimes against his own party’s traditional beliefs. His pursuit of tough fiscal consolidation made him increasingly unpopular in Greece and cost him his portfolio. In June 2011, Papaconstantinou was moved to the Environment, Energy and Climate Change ministry, which he held until May 17, 2012.

Euclid Tsakalotos

Euclid Tsakalotos is a newly elected Greek MP and a member of Synaspismos – the biggest party inside the anti-austerity Coalition of the Radical Left, SYRIZA. Boosted by the support gained at the May 6 elections, SYRIZA is hoping to increase its vote at the new round of elections scheduled for June 17. The party’s aim is to form an anti-austerity government while arguing for Greece to stay in the eurozone. Euclid is an economics professor at the University of Athens.

Costas Lapavitsas

Costas Lapavitsas says the only way for Greece to get back on track is to default on its debts and exit the eurozone. The Professor of Economics at the University of London says the “return to the drachma should be sudden, accompanied by a short bank holiday and immediate imposition of capital controls”.

Ralph Brinkhaus

Ralph Brinkhaus is a member of Germany’s Bundestag (parliament) under Chancellor Angela Merkel’s Christian Democratic Union. He says austerity measures are painful but necessary. Ralph doesn’t believe the German government will shift its position on austerity and says Greece needs to honour its commitments. He says that while a Greek default would be difficult for Europe, it would not cause as much damage now as it would have two years ago.

Jost Stollmann

Jost Stollmann is a German entrepreneur who migrated to Australia in 2004. He was previously Germany’s Shadow Minister for the Economy and Technology. Jost supports the reform process pushed by George Papaconstantinou. He’s worried that the rise of extremist parties could jeopardise a painful but necessary reform process in Greece. He says that if Greece exits the euro, the shock will be absorbed and life will go on. Jost is married to a Greek national.