Europe - Our Friends with Benefits?

It is rarely that I write a second piece in such time proximity to the foregoing one. But it seems that there is an awful lot that is going wrong in the last few hours. With the obvious anger for no reason on both sides - Greece because its political staff is waking up to a post-election reality that cancels the totality of the pre-election agenda and faced with the prospects of this Government's quickest downfall in recent political history - and Germany pissed at the fact that Varoufaki's cannot keep his act together and keeps contradicting himself somewhat deliberately but in a way that only points at a split personality. Only yesterday, and after supposedly having submitted a list of reforms that the rest of his European colleagues are trying to sell to their domestic parliaments, he re-bounces in the French press (Charlie Hebdo), reviving discussions about a possible haircut of the Greek debt and threatening to retaliate and destroy Europe for its firm stance against his government. Speaking to many of my friends who understand economics better than myself, I found that most see a further haircut as non-avoidable. However, they all agree that this recovery tool will only come into play at a moment of political convenience to the European partners. In other words what they say is that a valid claim develops its full potential only when brought forward at the right timing. And they all agree that this is clearly not the case right now. Schaeuble, for whom I begin to develop a great sympathy and compassion for having to put up with a renegade like Varoufakis, has gone furious once again at the bold and provocative statements made by the latter, only hours after the submission of the reform list, and under the auspices of rising opposition in almost every EU country against an extension of the plan. The man Varoufakis, must simply be insane and should be contained for the sake of the rescue of what is still left to be rescued in terms of dignity and political trust into this country. By now everyone in Greece is getting a taste of how dangerous and ridiculous this guy is and it becomes a matter of national security to have him removed, as quickly as possible and before he gets another opportunity to do more damage. And as another german journalist wrote today, if words had "bodies" what we would have as a picture right now is only "bottoms" facing each other, not faces...she compares our relationship to Europe to a forced marriage, where even the exchange of feelings is based on a "quid pro quo" arrangement. And if that is true, I still am unclear about what Europe gets, as I definitely understand what Greece gets in this trade.

Post by Theodore Patsellis - PRP Law

tpatsellis@prp-law.com

Corporate Law and International Taxation Attorney with substantial international experience in Europe, the Middle East, Asia Pacific and the Baltic Region. High premium in providing preemptive legal and support in Greek, English or German. Additional focus on contract drafting, corporate and statutory compliance, corporate Governance and effective tax planning.