Bloomberg Business quotes Global Business and Economics Program Director Andea Montanino on the political repercussions should Chancellor Angela Merkel’s diplomacy in Greece prove unsuccessful:
For a politician who regularly tops German popularity ratings, a drop in the polls to third place — behind Schaeuble — is ominous as the prospect of a Greek exit from the euro looms. She’s already spent political capital engaging with Greek Prime Minister Alexis Tsipras, agreeing to talks after initially trying to keep him at arm’s length.
“Any failure will be seen as a personal failure,” said Andrea Montanino, who stepped down as Italy’s representative to the International Monetary Fund (IMF) last year and is now director of the Atlantic Council’s global business and economics program in Washington.
While her austerity rhetoric played well to a domestic audience tired of bailing out struggling euro members, it may come to haunt her. The sacrifices imposed on Greece have failed to resurrect the country’s economic fortunes and ushered in a radical opposition party intent on pushing back even harder.