As said before, Greece isn’t going anywhere — and apparently Greece would rather capitulate and be placed under German and Troika command than bow out and face imminent total collapse within days or weeks. It would lead to a violent overthrow of the Tsipras government whereas Alexis would likely still be soon replaced for defying the Greek “No” referendum vote, or, the will of the people. Capitulation will still lead to a draining of the Greek taxpayer bank accounts as per bailout requirements.
Why have the Greeks signed up to harsher austerity?
Prime Minister Alexis Tsipras is banking on securing an agreement with his creditors to keep the country in the euro. By agreeing to carry out many of the tough reforms and spending cuts he has so far resisted, he hopes to get a big concession on relieving part of the country’s debt.
Is this worse than the deal voters rejected in the referendum?
Yes and no. On the one hand the VAT hikes and pensions reforms are exactly what creditors have wanted over the last month.
Angela Merkel faces a defining moment in her political career as chorus of voices push for Greek debt relief
Germany is at last bowing to pressure as a chorus of countries and key institutions demand debt relief for Greece, a shift that could break the five-month stalemate and avert a potentially disastrous rupture of monetary union at this Sunday’s last-ditch summit.
In a highly significant move, the European Council has called on both sides to make major concessions, insisting that the creditor powers must do their part as the radical Syriza government puts forward a new raft of proposals on economic reforms before a deadline expires tonight.
BRUSSELS – Cash-strapped Greece recorded its first primary budget surplus in a generation last year, according to data released by Eurostat on Wednesday (23 April).
Excluding interest on its debt repayments and a number of one-off measures to prop up its banks, Athens recorded a surplus of €1.5 billion, worth the equivalent of 0.8% of its economic output in 2013. Despite this, Greece still recorded an overall deficit figure of 12.7 percent, up by 4 percent on the previous year as the crisis-hit country endured a sixth straight year of recession. Continue reading →
Being that Germany is the EU, look for the major influences of future change and reform to come from Berlin — as well as increased power in Berlin’s favor.
The unprecedented and sweeping powers for creditors would indeed deal a huge blow to Greece’s sovereignty, but they could help mobilize more support for the government in Athens from its European partners.
Several German lawmakers have repeatedly said that giving more money to Greece is unthinkable without stricter enforcement and control of the conditions attached to the rescue packages.
Greece is currently locked in a twin effort, seeking to secure a crucial debt relief deal with private investors while also tackling the pressing demands from its European partners and the IMF for more austerity measures and deeper reforms.
Failure on either front would force the country to default on its debt in less than two months, pouring new fuel on the fires of Europe’s debt crisis.