US intervenes for solution on Greek crisis

The ongoing impasse between the Greek government and its EU partners regarding the terms of a new bailout agreement that would avert the Eurozone member-state from leaving the common currency has prompted a more active intervention by the United States. The US fear a Grexit could lead to a destabilization of the Balkan region, but most importantly a shift in the post WW2 balance of power in the Mediterranean, with Greece ‘flirting’ with Russia and the BRICS – the new economic institution set up by Brazil, Russia, China and South Africa. US Treasury Secretary Jack Lew made it very clear on Wednesday, while addressing an audience at the Brookings Institute, warning “We simply don’t need the geopolitical mistake of a Greek melt down”. He echoed the concerns of the IMF, which released a report recently claiming the Greek debts were unsustainable and needed a haircut.

President Obama with Treasury Secretary Lew and Vice President Joe Biden

That’s the third time the US has intervened in the Greek crisis in recent days, as late yesterday President Barack Obama met with Jack Lew and Vice President Joe Biden to discuss among other things the Greek issue. Obama had also contacted Greek PM Tsipras and German Chancellor Merkel urging them to reach a solution as fast as possible to avoid global financial instability.