Edward Culchenko
During yesterday’s 3-hour meeting in Germany, Angela Merkel, Francois Hollande and Jean-Claude Juncker, President of the European Commission, agreed to keep on searching for the ways and means of resolving the Greek crisis. Mario Draghi and Christine Lagarde, Presidents of the ECB and IMF respectively, were present at the meeting as well.
According to German media, the parties have been active seeking the way out of the crisis. They are going to continue doing so. However, this time they want to attract Athens.
In particular, they are going to make Greece the last offer to compromise and avoid negative consequences. Greece has been having talks with the international lenders regarding further financial aid in exchange for political and economic reforms in the country. In June, Greece is obliged to pay the IMF 1,6bn euro, which is a problem if to consider the fact that the Greece budget has a considerable deficit.
Masterforex-V Academy reports that if the newly-created Greek coalition refuses to accept the offer, June is probably going to be the last month for Greece as a Eurozone member. In other words, the country will be forced to quit the currency union and go back to the old national currency.
Back in February, Greece promised to prepare the list of forthcoming reforms in order to comply with the conditions put forward by the international lenders. However, the promised list hasn’t been introduced so far. Instead, they suggested implementing several tax reforms, including some changes in the way the VAT is calculated. Still, the international lenders assume this is not enough to continue supporting Greece financially.
Meanwhile, Greece has less than 4 weeks to resolve the issue since the deadline is June 30th. In order to get enough time to settle accounts with the IMF, Athens will have to compromise with the lenders by mid June.
Meanwhile, more and more experts and top-ranking politicians start talking about the likelihood of Greece quoting the Eurozone. The current Greek authorities seem to become a scapegoat. They a re said to be unable to do their job properly in order to resolve the escalating crisis.
it seems like Greece will have to practice austerity once again since the budget deficit is considerable while the lenders do not want to sponsor the country anymore if there are no proper changes leading to a lower deficit and a stronger economy. So it’s high time for the Greek president to stop talking and start doing his best to save the country from an even bigger financial and political crisis if he wants to remain the president.
Edward Culchenko
