Creditors’s knife at Greece’s throat: No conclusion of second review, if no legislation of future measures now
European creditors continue the hard line towards the Greek government with a clear message: The institutions representatives will not return to Athens if the government does not agree to legislate now additional austerity measures for the years 2019 and 2020.
Citing an anonymous sources in Brussels, private ANT1 TV reported, “the Troika will not return to Athens unless the government legislate now the austerity measures” to be implemented after the current Greek program concludes in August 2018.
Greece’s European creditors claim that the ball is in Greece’s court.
If Greece agrees to legislate in advance, then the conclusion of the second review would be more visible, the creditors allegedly have messaged to Athens.
According to ANT1 report, there seem to be no further discussion on the issue between Greece and lenders for the time being and the “source” said creditors have not sent any letter to Greece as they “run out of stamps.”
Return of the creditors’ representatives (institutions) to Athens is essential for the conclusion of the second review in the Greek program.
Although it has not cleared its participation in the Greek program, the International Monetary Fund insists that Greece has to implement additional austerity measures in 2019-2020, in order to achieve the goal of 3.5% Primary Surplus. Otherwise, the IMF considers the Greek debt as “unsustainable.”
The European lenders, who imposed this 3.5% goal in the 3.bailout agreement of August 2015, claim that the Greek debt is sustainable. And they ping pong between the IMF’s and Greece.
At the end of the day, the creditors and the IMF agree to disagree and expect form Greece to take measures that were not in the 3. bailout agreement.
Accepting to legislate now future measures and independent from additional funding is something that the Greek government cannot do as the Constitution proprieties such legislation.
Additional measures and additional funding would also mean a fourth bailout for Greece with more disastrous consequences for a society where one third lives below the poverty line.
Blackmail and deadlines are the main strategy for the country’s creditors when it comes to the government to accept a tight austerity that leads to nothing except to more debt and more economic crisis.
PS yes. creditors have time. time until at least elections in Germany (Sept 2017) are over. who cares if a mother can feed her children, a patient can buy his drugs or a pensioner can heat his home.