Tuesday, July 24, 2012

Will Greece receive more funds from the Troika?

        Troika inspectors from the IMF, European Commission, and European Central Bank  are back in Greece meeting with Greek officials. The Prime Minister Antonis Samaras said that he would push ahead with the implementing deep cuts demanded by the Troika. At the same time Samaras lashed out at foreign officials whom he did not name for trying to sabotage Greece's efforts to find a solution to its problems
     Samaras complained about foreign officials who openly said that Greece could not make its commitments. Samaras said:
   The Troika will decide whether to continue providing more scheduled payments of  bailout money to Greece. If they decide not to extend more aid Greece could default on payments and perhaps be forced to leave the Euro zone.  "I say it openly and publicly, they undermine our national effort. We do all we can to bring the country back on its feet and they do all they can so we can fail," 
    Over last weekend on Sunday the German economic minister said he did not expect Greece could fulfill its  obligations under the bailout conditions. As a result, there would be no more money for Greece. Samaras wants to negotiate along with his coalition partners changes to the bailout terms. Samaras faces strong opposition within Greece to the harsh austerity measures imposed by the Troika as a condition for receiving bailout funds.
      The Greek economy has been declining at a rate of around 7 per cent this year after years of recession. Further austerity will likely decrease output further. Unemployment is close to 24 per cent..
   Troika officials claim that the Greek government is not implementing pro-growth measures such as privatizations, tax reform, and opening closed markets and professions. A source from the Troika told Reuters:"The programme has not produced the desired results because it was not implemented. We must first see the government fulfill its commitments and then decide if it works or if it needs to be adjusted." The Troika may be asking for what is not politically possible in the present context. For more see this article.

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