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Title: Washington fears losing Greece to Moscow
Source:
Financial Times
URL Source: http://www.ft.com/intl/cms/s/0/3f0b ... 23-11e5-8201-cbdb03d71480.html
Published: Jun 21, 2015
Author: Geoff Dyer
Post Date: 2015-06-22 06:45:43 by Tooconservative
Keywords: None
Views: 2261
Comments: 26
Throughout the prolonged showdown between Greece and its creditors, the Obama administration has largely sat on the sidelines, issuing the occasional warning about the potential economic impact of a default. But with Greece now on the verge of bankruptcy, the US is also beginning to worry about the political fallout from a deeper crisis and the potential for Russia to gain increased influence over a Nato member. As Washington tries to maintain a united western front in support of sanctions on Russia over Ukraine, a Greek default could provide Moscow an opportunity to sow new divisions among America’s European allies. “You can easily see how geopolitically this would be a gift to Russia,” says Sebastian Mallaby at the Council on Foreign Relations. “You do not want Europe to have to deal with a Greece that is a member of Nato but which all of a sudden hates the west and is cosying up to Russia.” Greece was regarded as a frontline state against the advance of Soviet-backed communism during the cold war. Its EU accession in 1981 is one factor that cemented its identity as a western democracy, something that was deepened 20 years later with the adoption of the euro. For some months, the administration of President Barack Obama has been quietly urging Germany and other EU members to try to find a way to resolve the stand-off with Greece. While economic considerations have been at the forefront, diplomats say the EU’s position on Ukraine has also been part of the conversation. The visit by Greek prime minister Alexis Tsipras to St Petersburg late last week served as a reminder of the current Greek government’s political ties to President Vladimir Putin’s Russia and showed its willingness to look towards Moscow at moments when the dispute with international creditors is at its most intense. The Russia trip also prompted new speculation that Moscow might be willing to lend substantial financial assistance to Athens, although this prospect is played down by analysts in Washington given the scale of the economic problems Greece would likely face if it were to default. “It is not as if Russia has a lot of money to throw around,” says Thomas Wright at the Brookings Institution in Washington. “Russia is not a huge potential export market, it is not a new economic option that did not exist for the Greeks before the crisis.” Instead, the worry is that the prolonged economic instability that could result from a default would deepen the political hostility towards the rest of Europe among the Greek electorate, opening an opportunity for Russia to boost its sway in the country. Throughout the Ukraine crisis, Moscow has been working to weaken support in the EU for sanctions, which require unanimous backing from the bloc’s 28 members. It has pushed to encourage pro-Russian political sentiment in Hungary and southeastern Europe, partly through its energy diplomacy. Angela Merkel, the German chancellor, last year warned about Russia’s designs in the region. Her worry about the geopolitical ramifications of a Grexit is one consideration that separates her from Wolfgang Schäuble, her hardline finance minister. Obama administration officials insist the EU remains committed to the sanctions on Russia over Ukraine. “We still believe that Europe remains united against Russia and what they’re doing,” says John Kirby, state department spokesman, when asked about the potential impact of a Greek default. “I think coming out of the G7 you saw a lot of unity in Europe for continued sanctions against Russia and th possibility for increased sanctions to further isolate Russia.” Julianne Smith, a former Obama administration official now at the Center for a New American Security, says the showdown over Greece plays into a broader Washington concern about the effectiveness of the EU at a time when the UK is also planning a referendum about its own membership. “Washington is worried about both the Grexit and Brexit situations,” she says. “Both situations are a distraction at a time when we need Europe to show a lot of leadership.” Instead, the result of the succession of crises is “likely to provoke a period of navel-gazing” among Europe’s leaders.
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#2. To: TooConservative (#0)
They were the biggest drama queens in NATO, and they and the Turks were always a royal pain. NATO is a worthless institution that only a RINO could love. RINO's prefer that America have weak allies and strong enemies. Fearing the loss of Greece is like "fearing" the loss of Yukon from an internet forum.
Beware Greeks bearing gifts. Or standing behind you. : )
I think the original saying was "Beware of Greeks bearing Vaseline".
Well, the Greeks have a bad reputation on this that is not actually deserved. The ancient Greeks were not nearly so gay as the Romans were (a real pack of pervs including baby and slave abusers). The reputation of ancient Greeks is judged by the writings of a few famous Greek gays and there are many indications from history that ancient Greece was not like San Francisco, much as the modern Left wants to pretend that it was. The ancients in general were much more the pagan if-it-feels-good-do-it types. Or the any-port-in-a-storm types.
It has to do with borrowing money in Euros. That is the reason they need to be so and so on their books. The illegal vassal state of NATO's called Kosovo uses the Euro as it's currency and it is not even in the EU but because of loans can borrow with Euros. What the Greeks were doing was borrowing at low interest rates then re- loaning the loans out at slightly higher interest rates to Balkan and Turkish banks and making a nice profit. Then the Wall Street melt down happened and those loans dried up. That's the difference in Greece's case. People don't really talk about that aspect of the crisis that much concentrating on Greek retirement ages or wages caused this but the Greek state borrowed that money to loan shark it out to other non EU states.
Either way I have a hard time working up any sympathy for them.
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Top • Page Up • Full Thread • Page Down • Bottom/LatestWashington fears losing Greece to Moscow
#5. To: nativist nationalist (#2)
Fearing the loss of Greece is like "fearing" the loss of Yukon from an internet forum.
#7. To: TooConservative (#5)
Beware Greeks bearing gifts.
#8. To: sneakypete (#7)
#16. To: TooConservative, sneakypete (#8)
#20. To: Pericles (#16)
Then the Wall Street melt down happened and those loans dried up. That's the difference in Greece's case. People don't really talk about that aspect of the crisis that much concentrating on Greek retirement ages or wages caused this but the Greek state borrowed that money to loan shark it out to other non EU states.
Replies to Comment # 20.
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