Mr Tsipras, we need to rebuild trust before we can talk

http://www.theguardian.com/commentisfree/2015/jul/06/tsipras-restore-trust-greece-eu

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In the course of the past six months the Syriza government has done everything to plunge Greece from its path of recovery back into a crisis that leaves its people in a precarious humanitarian situation and alienated its partners in the eurozone.

Contrary to the claims of Alexis Tsipras and his party, the current challenge is not about austerity. It is about restoring Greece’s economic competitiveness through much-needed structural reforms. The Greek economy is in free fall, Greece lacks the political and administrative structures of a modern state, and nepotism and corruption are widespread.

The countries of the eurozone are willing to support Greece, but there will be no new relief without structural reforms

Greece was not alone in being hit by the financial crisis. The prudent handling of reforms by other governments like Portugal, Ireland, Spain and Latvia was hugely successful. We now see stable growth rates, recovering economies and governments paying down their debts early.

Ambitious structural reforms are at the core of these positive developments and the current Greek government must radically change its approach and show its willingness to follow suit.

The EU and the countries of the eurozone in particular are willing to support Greece, but there will be no new relief measures without structural reforms. We will not support an unconditional transfer union, because that will just lead to the same problems all over again. Countries that have been through a strenuous reform cycle cannot be expected to now pay for the mismanagement of the Greek government. Europe will not succumb to the wishes of Tsipras.

On the basis of the stability mechanism, a new relief programme must now be devised. Without structural reforms, there will be no discussion about writing off any debts. Additionally, we need measures to rebuild public administration at the national and the local level. Without them, the effects of debt relief would vanish instantly, as they did two years ago.

The 18 other democracies of the eurozone will each have to decide how much can be asked of their populations

The EU and the eurozone countries respect the decision of the Greek people; but it came about through the deliberate manipulation of large parts of the population by the Syriza government, fuelled by the radical rhetoric and behaviour of its former finance minister, Yanis Varoufakis.

The EU has to make sure that the Greek people do not continue to suffer from the mismanagement of a radical leftwing elite. Our policy is not austerity, but fiscal solidity, structural reform as decisive instruments, and growth.

The no vote poses a great challenge for the EU. But more important is the risk of a dramatic situation for the Greek people. Tsipras must do everything to restore a sufficient level of trust for a new round of talks. He must part with a style that has undermined the credibility of his leadership. And he must come forward with concrete proposals, including structural reforms and rebuilding public administration.

The 18 other democracies of the eurozone will then each have to decide how and if a new relief programme can be introduced, and how much can be asked of their populations and parliaments. It would be better if a solution including much-needed structural reforms can be agreed upon. Nobody wants a Grexit, but nobody will continue to accept a government that constantly disobeys agreements. The euro would survive without Greece. But would Greece survive without the euro?