ATHENS: The creation of a committee to investigate 10 Greek politicians in connection with the Novartis bribery allegations is widely seen as nothing other than a risky, for the economy’s stability, attempt by Prime Minister Alexis Tsipras to polarize the political climate, change the agenda of the public debate and shoot the ball into the opposition’s court.
Facing a slew of contentious decisions in coming months, the leftist-led government will have to cross a number of hurdles if it is to serve a full term in office and not call early elections.
First among these are the ongoing negotiations in the name dispute with the Former Yugoslav Republic of Macedonia.
Tellingly, the mass demonstration in central Athens earlier in the month against a compromise solution – just a day before the Novartis case broke – highlighted the political losses the government stands to incur if it is seen giving away the term “Macedonia” to Skopje.
The next few weeks will also prove decisive as to whether the government’s primary surplus targets are realistic or if the reduction of the tax threshold will be expedited.
Meanwhile, as talks to lighten Greece’s debt burden move ahead, it will become increasingly clear that Tsipras’s narrative of a “clean exit” from the bailout program in August is untenable, as the country will remain under close supervision and tied by commitments it has to honor in the coming years.
In addition, the government’s much-touted plan to access international markets without a precautionary credit line is being openly disputed by the European Central Bank and the markets themselves – reflected in the rising yields on Greek bonds.
