ASSESSMENTS

Greece Stands Alone in Its Fight for Debt Relief

Feb 20, 2015 | 10:12 GMT

Greece Stands Alone in Its Fight for Debt Relief
Greek Prime Minister Alexis Tsipras attends the presidential vote at the Greek parliament in Athens on Feb. 18.

(LOUISA GOULIAMAKI/AFP/Getty Images)

Summary

All eyes in the eurozone are fixed on Greece these days. The question whether to grant Athens debt relief is generating intense debate in the eurozone periphery, and negotiations over Greece's debt could ultimately end with the country leaving the currency union. In theory, countries such as Spain, Portugal, Ireland and Italy should be supporting Greece, since debt relief for Athens could enable them to demand the same. In practice, however, the Greek government has received little support from its neighbors, mainly because of their own political constraints. Though the anti-austerity movement will eventually gain impetus in periphery countries, it will not spread fast enough to help Athens in its current standoff with Germany.

Domestic political constraints will prevent other debtor countries from coming to Athens' rescue. ...

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