Both sides must keep promises

Ongoing developments in Germany are cause for concern at home. Athens must make sure it does not end up hostage to the power games being played inside Germany’s next coalition.

Early signs indicate that politicians who have in the past supported Greece’s exit from the euro area could claim key posts in the new administration. (The leader of the pro-business Free Democrats, a possible junior partner in Chancellor Angela Merkel’s next coalition government, last week called for a tougher stance on fiscal and eurozone policy, while criticizing outgoing Finance Minister Wolfgang Schaeuble for not being tough enough on Greece.)

The Greek government must respond by living up to its commitments and make sure that the third review of its third bailout program wraps up as soon as possible.

For her part, Merkel must deliver on her promise on further Greek debt relief – regardless of the political cost that this could entail at home.

Both sides must keep their promises, or they could drain any momentum from the Greek economy.