Greece is still struggling in its efforts towards an economic recovery after a harrowing financial turmoil plunged the country into a prolonged crisis. Athens yesterday resumed reform talks with the International Monetary Fund (IMF) and other creditors to solve differences over budget goals and the scope of ongoing pension and tax overhauls, which have been considered the toughest for the Greek government to implement. But the worst is over for the country, and the government is moving firmly and steadily towards its goal of economic recovery. The government of Prime Minister Alexis Tsipras is extremely confident that the latest audit would be concluded by April 22. A satisfactory completion of this audit would enable the creditors more funds for Greece.
In July, Greece grudgingly accepted a three-year, $94bn European Union bailout that saved it from crashing out of the eurozone. But the bailout came with strict conditions such as fresh tax and pay cuts. The terms imposed by creditors have been painful for Greece, which even triggered riots in the country. But the pain hasn’t subsided fully. Tsipras yesterday said the IMF was now pushing for more austerity measures like wage cuts, a layoff legislation and broader home foreclosures that are not part of this deal. These measures are certain to stoke discontent, but the country has no option than accept the terms. But the international lender is working for some immediate relief for Athens. The agency is trying to convince the Europeans to accept is debt relief, which Greece itself badly wants.
Interestingly, the latest Greece-creditors talks are happening amid some interesting ‘leaks’ that the IMF was toying with the idea of a Greek default, which was vehemently denied by Christine Lagarde. But Greece reacted furiously to the leaks by WikiLeaks. Athens angrily demanded explanations over the report saying the IMF was looking for a crisis “event” to push the indebted nation and European negotiators into accepting its fiscal targets.
Even if the WikiLeaks reports are true, it won’t help the talks and will only vitiate the atmosphere. This was highlighted by the IMF chief in her talks with the Greek government. “This weekend’s incident has made me concerned as to whether we can indeed achieve progress in a climate of extreme sensitivity to statements of either side,” Lagarde wrote to Tsipras. “It is critical that your authorities ensure an environment that respects the privacy of their internal discussions and take all necessary steps to guarantee their personal safety,” she added.
The ongoing talks are likely to end with positive results. Greece has said goodbye to the worst, and people are looking at rebuilding their lives and the government is likely to have learnt all the right lessons from the crisis.
Greece is still struggling in its efforts towards an economic recovery after a harrowing financial turmoil plunged the country into a prolonged crisis. Athens yesterday resumed reform talks with the International Monetary Fund (IMF) and other creditors to solve differences over budget goals and the scope of ongoing pension and tax overhauls, which have been considered the toughest for the Greek government to implement. But the worst is over for the country, and the government is moving firmly and steadily towards its goal of economic recovery. The government of Prime Minister Alexis Tsipras is extremely confident that the latest audit would be concluded by April 22. A satisfactory completion of this audit would enable the creditors more funds for Greece.
In July, Greece grudgingly accepted a three-year, $94bn European Union bailout that saved it from crashing out of the eurozone. But the bailout came with strict conditions such as fresh tax and pay cuts. The terms imposed by creditors have been painful for Greece, which even triggered riots in the country. But the pain hasn’t subsided fully. Tsipras yesterday said the IMF was now pushing for more austerity measures like wage cuts, a layoff legislation and broader home foreclosures that are not part of this deal. These measures are certain to stoke discontent, but the country has no option than accept the terms. But the international lender is working for some immediate relief for Athens. The agency is trying to convince the Europeans to accept is debt relief, which Greece itself badly wants.
Interestingly, the latest Greece-creditors talks are happening amid some interesting ‘leaks’ that the IMF was toying with the idea of a Greek default, which was vehemently denied by Christine Lagarde. But Greece reacted furiously to the leaks by WikiLeaks. Athens angrily demanded explanations over the report saying the IMF was looking for a crisis “event” to push the indebted nation and European negotiators into accepting its fiscal targets.
Even if the WikiLeaks reports are true, it won’t help the talks and will only vitiate the atmosphere. This was highlighted by the IMF chief in her talks with the Greek government. “This weekend’s incident has made me concerned as to whether we can indeed achieve progress in a climate of extreme sensitivity to statements of either side,” Lagarde wrote to Tsipras. “It is critical that your authorities ensure an environment that respects the privacy of their internal discussions and take all necessary steps to guarantee their personal safety,” she added.
The ongoing talks are likely to end with positive results. Greece has said goodbye to the worst, and people are looking at rebuilding their lives and the government is likely to have learnt all the right lessons from the crisis.
