Still time to strike win-win deal with Greece

MEP Ernest Maragall, a member of the European Parliament's Budgets Committee, has said that a 'win-win' solution is still possible that will allow Greece to remain in the Euro, if both the EU and Greek government are willing to recognise that there is still time and space for a real dialogue.

"We can easily accept that in the last period they have both been at fault to some degree, but we also know that the main responsibility lies with the EU institutions, the real holder of economic and political power."

The Catalan MEP said that the current crisis could be averted by a more realistic proposal being put to Greece by its creditors which would be both viable, and able to encourage long term economic recovery.

He said that "the closed European offer in its present terms cannot be accepted by Greece, and equally a 'take it or leave it' referendum would not solve the situation, which could only be achieved by a return to negotiations on a mutually acceptable proposal".

Ernest Margall commented:

"It's now perfectly obvious that Grexit will not be a panacea for Greece or for Europe. We must not be frivolous about this, nor must we trivialise the magnitude of the problem or its solution.

"The whole negotiation process has been flawed from the start, with both parties blaming the other and unwilling to achieve an honourable compromise. A win-win agreement is still possible, but this approach will not achieve that.

"Neither a yes or no vote in a 'take it or leave it' referendum will solve these problems. A yes vote on current proposals would simply keep Greece locked into a scheme that is unfair and ineffective, prolonging economic hardship and increasing debt. A no vote would certainly bring chaos to Greece, at least initially, and would completely undermine the process of EU integration.

"There is still time for Greece's creditors to put forward a revised proposal that will bring about short term remedies to the humanitarian crisis in Greece, as well as offering the prospect of sustainable economic growth. The Greek government should be ready to discuss such a proposal.

"It's clear that governance in the Euro zone has been wholly insufficient to either avoid this crisis or to solve it once it arrived. Recognising past mistakes will lay the ground for a solution in Greece, rather than an insistence that the debtor must be held solely responsible."