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Greece confident of making a deal with creditors this week

Greece’s government has expressed confidence over reaching a deal with the creditors this week. The country’s interior minister on Saturday stated that the country is willing to push back parts of anti-austerity program, to reach a compromise.greece-economic-reform

However, the European Union and the International Monitory Fund are less optimistic about the negotiations. Greece has been engaged with talks for months with Eu and IMF on a cash-for-reforms deal, to extend its bailouts. Greece will have to receive some sort of aid or it will default by June 30. The country’s reluctance to alter its labor and pension programs has been cited as a major reason for withholding the funds.

“We believe that we can and we must have a solution and a deal this week,” said Interior Minister Nikos Voutsis.

Voutsis stated that some parts of the anti-austerity program could be pushed by six-months or a year, for creating some balance. However, he did not mention which parts of the program will be pushed back. Syriza, the current ruling party which came to power in January had promised the Greek electorate, a radical shift from the austerity policies imposed by the EU. Prime Minister Alexis Tsipras also promised restoring minimum wage levels and collective bargaining rights.

However, a compomise is yet to be reached as disagreements loom over the imposition of higher VAT. Grecce does not want to burden its citizens with a higher VAT. Economy Minister George Stathakis stated that the idea of Plan B does not exist, and the country needed to stay in the Eurozone but on a better organized aid programme.

The Unit ed Stated claimed that failing to reach a deal could pose a risk to the world economy as a whole. Greece must avoid defaulting on its debts before June 30 deadline. Stathakis stated that “otherwise,” mainly Greece but the European Union as well will step into “unchartered waters” and no one wants that.

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About Anirudh Madhav

A movie buff, a bookworm, and a compulsive doodler. All posts by Anirudh

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