The Ultimate Game Of Chicken Has Begun In Europe

chicken

Photo: Wikipedia

Prior to Greece’s election this Sunday, the assumption was that if left-winger Alexis Tsipras won, and steadfastly refused to comply with the current bailout, then a huge game of chicken would commence.Would Tsipras back down (risking future bailout money?) or would Europe back down (out of fear of a Greek exit).

But Tsipras did not win, and so the assumption was that the Samaras government would quietly renegotiate the bailout (modestly).

However the idea of a quiet and modest renegotiation is not how things have started off.

According to Bloomberg, the new Greek government will call for no public sector layoffs or wage cuts… meanwhile other European leaders are saying they see no reason to renegotiate the bailout.

So the two sides are running straight at each other.

If Europe doesn’t give in, then the new Greek government will collapse in no time. Greece meanwhile can’t possibly expect the rest of Europe to abide by no cuts at all to the public sector.

Should be interesting.

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