(Newswire.net — July 3, 2015) — As the citizens of Greece face a referendum on Sunday, the speculations of the future of Greece roam the European Union and many experts have shared their views on matter. Many voices can be heard saying that if Greeks vote ‘No’ to the austerity that the IMF and ECB proposed, that would mean that Greece could leave the Eurozone, and no one is really sure what impact the move could have on the Europena Union.
According to economist and author James K. Galbraith, Professor at the University of Texas at Austin, the truth about Greek financial drama is quite opposite from the general opinion.
In his article on “9 myths about the Greek crisis,” published by the Politico, Galbraith explained that if Greeks vote “No” to the IMF and ECB austerity proposal “that can save Greece – and by saving Greece, save Europe.”
“A “No” means that the Greek people will not bend, that their government will not fall, and that the creditors need, finally, to come to terms with the failures of European policy so far. Negotiations can then resume – or more correctly, proper negotiations can then start, Galbraith wrote.
If the “Yes” option wins, Galbraith predicts drastic measures would hit Greece so hard, the Tsipras’ government would fall and “the anti-Europeans will come next, possibly including ultra-right elements such as the Greek Nazi party, Golden Dawn. The anti-European fire could spread to France, the UK and Spain, among other countries,” according to Galbrait.
Recent burnings of the EU flag in Athens is not a demonstration of hatred toward the EU, but rather a revolt against the indecent proposal of the International Monetary Fund and European Central Bank. According to Galbrait, instead of protecting the Greek banking system, ECB actually cut off direct financing of Greek banks, which resulted in a slow run on the banks and paralyzed Greek economic activity.
IMF Managing Director Christine Lagarde claims that her institution has shown “flexibility” in negotiations with the Greeks. According to Galbrait, it’s just another myth.
In fact, the IMF has conceded almost nothing over four months: not on taxes, pensions, wages, collective bargaining or the amount of Greece’s debt, Galbrait wrote.
After working for the past four years with Yanis Varoufakis, now the Greek finance minister, Galbrait wrote he has close view of the process and can confirm that the Greeks are not playing games. In fact, everything that president Tsipras is saying is revealed from the beginning and with no hidden agendas.
Another myth is that Greeks have an issue with NATO and the Americans, since leftists won the elections. This particularly worried some conservatives in US that falsely equalize Greek Leftists with the communists. In reality, attitudes on the Greek Left have changed, according to Galbrait, thanks partly to experience with the Germans. This government is pro-American and firmly a member of NATO, Galbrait is adamant.
James K. Galbraith holds the Lloyd M. Bentsen Jr. Chair in Government/Business Relations at the Lyndon B. Johnson School of Public Affairs, the University of Texas at Austin. He has followed the Greek drama in Greece, Brussels, Paris and Berlin since January. His most recent book is “The End of Normal: The Great Crisis and the Future of Growth.”