last mediation
BREAKINGVIEWS-Greece could use German-style last-ditch mediation - RTRS
01-Jul-2015 09:31:48
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Olaf Storbeck
LONDON, July 1 (Reuters Breakingviews) - Fresh, constructive
ideas to resolve the Greek gridlock are in short supply these
days - more so if they come with a German signature. That makes
a proposal put forward on June 30 by the Duesseldorf-based
Macroeconomic Policy Institute (IMK) all the more striking.
The academic think tank, which is financed by the country’s
trade unions, is suggesting creditors and debtors adopt a
well-proven German way to sort out acrimonious labour disputes.
If trade unions and employers in Europe’s largest economy fall
out with each other, they often resort to a procedure called
“Schlichtung” or arbitration.
The antagonists name one or two impartial mediators they
both trust who then try to work out a fair compromise. Each side
is free either to accept or reject the mediator’s proposal. In
the industrial history of Germany, this prevented or shortened
many strikes - a famous example being the 1980s brawl over the
35-hour working week. And on July 1, mediators resolved a
long-running dispute between train drivers and Deutsche Bahn
that involved a series of crippling strikes.
The procedure works well when negotiations have become
toxic. Opponents often find it easier to swallow their pride
when an impartial third party asks for concessions from both
sides. Good mediators also help the antagonists to overcome
personal distrust and understand their opponent’s point of view
and restrictions. In German labour disputes, notable elder
statesmen and academics are often picked.
In theory, the International Monetary Fund should have
played this sort of role in the five-year-long Greek crisis. But
the fund has also become an important creditor, so cannot act
neutrally. Instead, IMK suggests the OECD’s Secretary General
Angel Gurria. That’s a smart proposal, as the Mexican economist
and diplomat does not have personal skin in the game, is widely
respected and is known for his unorthodox and pragmatic views.
Of course, neither Greece nor euro zone ministers may want
outside help. But both sides have little to lose and much to
gain: a success could avert the tremendous economic and
political fallout from a country leaving the euro. Regardless of
whether Greeks vote "Yes" or not in Sunday’s referendum, both
sides should try a bit of Teutonic arbitration in the inevitably
protracted negotiations that will follow.
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CONTEXT NEWS
- The German Macroeconomic Policy Institute (IMK) on June 30
suggested that Greece and its creditors should turn to a
mutually respected mediator to end the impasse on the debt
negotiations.
- This could be the last chance to avert a government
default and a collapse of Greek banks, which had the potential
to destabilise the whole euro area, the think tank pointed out
in a statement.
- A potential mediator could be the secretary general of the
OECD, Angel Gurria, or head of the International Labour
Organization, Guy Ryder.
- IMK statement (in German)
Horn: Griechen und Gläubiger sollten einen Schlichter suchen - Hans-Böckler-Stiftung
- For previous columns by the author, Reuters customers can
click on [STORBECK/]
(Editing by George Hay and Sarah Bailey)
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(On Twitter
https://twitter.com/OlafStorbeck)
Keywords: GERMANY GREECE/MEDIATION BREAKINGVIEWS
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