Greek Prime Minister Alexis Tsipras learning EU’s No. 1 rule: Don’t mess with Angela Merkel

[hack89]

Alexis Tsipras is flouting the cardinal rule of political survival in Europe: don’t displease Angela Merkel.

The German chancellor’s disapproval helped end the political careers of former Italian prime minister Silvio Berlusconi and Greek leader George Papandreou.

After burning through whatever goodwill he had with Merkel’s lawmakers and the German public, the current Greek premier could be next.

The support of Merkel, politically secure in her 10th year leading Europe’s largest economy, is essential for debtor governments. Tsipras upended talks with his creditors last week calling a referendum on German-inspired austerity, a decision that left him few options if voters accept budget cuts as the cost of aid.

http://business.financialpost.com/news/economy/greek-prime-minister-alexis-tsipras-learning-eus-no-1-rule-dont-mess-with-angela-merkel

“Mr. Tsipras can continue his career on T-shirts for students {or some DU'rs}, replacing Che Guevara.”

[alcibiades_mystery]

1. The Number 1 Rule is "The Creditors Must be Made Whole!!!"

Angela Merkel is simply the vehicle for that rule's enforcement.

[hack89]

2. Private holders of Greek debt willingly took a 74% haircut

so I am not so sure how hard and fast that rule is. I think the real issue is the Greek demand for future blank checks.