Greece’s Referendum: The Price of Five Years of Cowardice

Europe’s rescue measures for Greece have failed. The nation is on the brink of bankruptcy, threatening default on International Monetary Fund loans that would trigger an end to additional bailout funds. Greek leaders stunned the rest of Europe by refusing to decide on a proposed deal and instead putting the matter before voters. Europe missed three windows of opportunity to curtail the ongoing crisis and display political courage, argues Christian Rickens of Spiegel Online. In arranging the original bailout in 2010, leaders “used tricks to circumvent clauses in European law that prohibited precisely this kind of shared liability within the currency union,” he writes. “Even then, the more courageous act would have been to force Greece's private creditors to absorb their losses.” In 2012, European leaders approved reduced bond payments combined with weak reforms. Then, after Greeks elected a left-wing government, Europe’s leaders balked at negotiations. The long, drawn-out process diminishes trust in political and financial systems. Europe’s leaders must face voters and admit that billions in tax funds have disappeared. – YaleGlobal