Greece alone must decide its fate

Financial Times
Editorial
May 8, 2012

The Greek people have finally delivered their verdict on the European rescue plan agreed by their leaders in February. At Sunday’s general election, almost 70 per cent of the votes cast were for parties opposed to the diet of austerity prescribed by that deal.

Support for the mainstream parties – New Democracy on the centre-right and Pasok on the left – collapsed and for the first time a neo-fascist party entered parliament. The vote signalled the depth of anger over the political establishment’s contribution to the crisis. The main parties are seen as pillars of a parasitic system, fuelled by political patronage and cronyism.

Given the difficulty of assembling any administration from the seething mass of interests represented in the new parliament – from extreme left to the ultranationalist right – a second poll is now likely. But with Greek public opinion highly inflamed, it is far from clear that a different answer will be forthcoming.

The result raises serious questions about Greece’s ability to live with the terms of the €174bn rescue deal it agreed with the EU and the International Monetary Fund. The deadline for parliament to pass the reforms required to trigger the package is the end of next month.

What is important is that the Greek people should now understand the choice that lies before them. While it is their democratic right to tear up any deal that has been done in their name, they should know that to do so would have consequences. Without the forbearance of their creditors, such an act would put the country into default and risk its exit from the eurozone.

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