That's not going to go over well back home but at least he seems to have gotten some concessions.And the reality check just arrived.
http://www.nytimes.com/2015/07/10/w...n-region®ion=top-news&WT.nav=top-news&_r=0
Greek Plan Accepts Austerity to Get Debt Relief
ATHENS — Only a day after grim predictions of financial and social collapse in Greece, a scramble appeared underway to work out the details of a new bailout package to bring the country back from the brink of falling out of the euro.
As details of the new offer emerged, it appeared that Prime Minister Alexis Tsipras was capitulating to demands on harsh austerity terms that he urged his countrymen to reject in the referendum last Sunday, like tax increases and various measures to cut the costs of pensions.
Great article, especially the part on French involvement. The other PIIGS are probably going to squeal about this depending on how much of the debt is forgiven. But other options outlined are giving it better interest rates and extending payment schedules.Mr. Tsipras seemed to have gained ground on debt relief, his one bedrock demand. Germany’s finance minister, Wolfgang Schäuble, finally gave a little on that Thursday, admitting that “debt sustainability is not feasible without a haircut,” or write-down of debt, even if he then appeared to backtrack.
And the reality check just arrived.
http://www.nytimes.com/2015/07/10/w...n-region®ion=top-news&WT.nav=top-news&_r=0
Greek Plan Accepts Austerity to Get Debt Relief
ATHENS Only a day after grim predictions of financial and social collapse in Greece, a scramble appeared underway to work out the details of a new bailout package to bring the country back from the brink of falling out of the euro.
As details of the new offer emerged, it appeared that Prime Minister Alexis Tsipras was capitulating to demands on harsh austerity terms that he urged his countrymen to reject in the referendum last Sunday, like tax increases and various measures to cut the costs of pensions.
How very odd. I wonder if Tsipras really intends to implement these new reforms, and if so, if the Greek people and his own socialist party will go along. I also wonder how the other poor European Union nations will take this, as well as the German people who were supposedly fighting mad already.And the reality check just arrived.
http://www.nytimes.com/2015/07/10/w...n-region®ion=top-news&WT.nav=top-news&_r=0
Greek Plan Accepts Austerity to Get Debt Relief
ATHENS — Only a day after grim predictions of financial and social collapse in Greece, a scramble appeared underway to work out the details of a new bailout package to bring the country back from the brink of falling out of the euro.
As details of the new offer emerged, it appeared that Prime Minister Alexis Tsipras was capitulating to demands on harsh austerity terms that he urged his countrymen to reject in the referendum last Sunday, like tax increases and various measures to cut the costs of pensions.
How very odd. I wonder if Tsipras really intends to implement these new reforms, and if so, if the Greek people and his own socialist party will go along. I also wonder how the other poor European Union nations will take this, as well as the German people who were supposedly fighting mad already.
At least the Greeks will get some short term relief, although long term I think they would have been better off going to their own currency. Hopefully the EU gives them at least five years without payments on these new funds; not much point in putting in new money and then taking it right back out. Here's hoping the Greeks can get their house in order.
Eskimospy will be happy - the Greeks did not run out of other people's money, they just had to make more promises.
Maybe, but how many of us are willing to embrace terrible short term pain for a promise of a better tomorrow? Even very moderate pain such as taking and paying back an education loan makes people crazy with insisting that the universe owes them. I don't think we can blame the Greeks for wanting to avoid that severe short term pain.The promises the Eurocrats extracted will crash the Greek economy even further. One of the relatively bright spots has been tourism, so what do the Europeans demand? Huge increase in taxes on tourist destinations and activities, which will make them less competitive with other destinations. So instead of Grexiting and making themselves more cost competitive, they are hit with a massive cost increase.
Maybe, but how many of us are willing to embrace terrible short term pain for a promise of a better tomorrow? Even very moderate pain such as taking and paying back an education loan makes people crazy with insisting that the universe owes them. I don't think we can blame the Greeks for wanting to avoid that severe short term pain.
On the lenders' side, I can certainly see other Europeans (many of who have lower standards of living than do the Greeks) not wanting to see their hard-earned tax dollars just given to the Greeks to spare them the pain of learning to live within their means.
Hopefully the Greeks modernize, get themselves off the dole and paying taxes, and establish a healthy economy competitive with the rest of the EU. Then they can pay back whatever they end up paying back (if anything) and not be a boil on Europe's buttocks. If that happens, then those Europeans whose hard-earned euros were given to Greece will at least have the satisfaction of knowing that it worked and the bailouts are over. Everybody wins, at least for some values of winning.
The promises the Eurocrats extracted will crash the Greek economy even further. One of the relatively bright spots has been tourism, so what do the Europeans demand? Huge increase in taxes on tourist destinations and activities, which will make them less competitive with other destinations. So instead of Grexiting and making themselves more cost competitive, they are hit with a massive cost increase.
Agreed. It's bizarre how people who have money to loan never seem to know nearly as much about economics as people who need to borrow money.It's a darn shame the folks that are making these decisions don't know as much about the issues as you.
I hope the Greeks use the money they get wisely, and put their house in order. It would be a tragedy if they fritter it away on government paychecks and handouts.
How very odd. I wonder if Tsipras really intends to implement these new reforms, and if so, if the Greek people and his own socialist party will go along. I also wonder how the other poor European Union nations will take this, as well as the German people who were supposedly fighting mad already.
At least the Greeks will get some short term relief, although long term I think they would have been better off going to their own currency. Hopefully the EU gives them at least five years without payments on these new funds; not much point in putting in new money and then taking it right back out. Here's hoping the Greeks can get their house in order.
Eskimospy will be happy - the Greeks did not run out of other people's money, they just had to make more promises of austerity.
It won't work. Austerity is not some difficulty you endure for a better future. It's something you endure now that also hurts your future. That 50% of unemployed youth is not becoming more productive and gaining experience in the workforce. The best minds that are leaving for greener pastures are not going to be building a better Greece. The money that is leaving Greece to pay creditors or to escape risk is not going to be invested in productivity improvements. It's all going to mean Greece will become a permanent ward of the EU.
Admittedly, hard not to emphasize with the Greek people.Syriza, the left-wing party that stormed to power in Greece in January, promised voters it would ditch austerity and renegotiate the country's €240bn (£180bn; $270bn) bailout with the European Union and International Monetary Fund.
...promised 300,000 new jobs in the private, public and social sectors...
a hefty increase in the minimum monthly wage - from €580 ($658; £433) to €751 ($853; £562)
...promised 300,000 households under the poverty line up to 300 kWh of free electricity per month and food subsidies for the same number of families who have no income.
Tax on heating fuel would be scrapped.
... promised to reinstate a Christmas bonus pension for pensioners receiving less than €700 ($795; £524) a month.
... plans for free medical care for those without jobs and medical insurance.
promised that its "fight against the humanitarian crisis has no negative fiscal effect".
... protection for people with mortgage arrears against the seizure of their property.
Property owners in Athens's leafy, northern suburbs were enticed with the promised abolition of a hated annual levy on private property.
Of course, all this assumes that the cynics who say Tsipras is intending to get Greece kicked out of the EZ after getting all the cash he can get are not correct. lol
Agreed. It's bizarre how people who have money to loan never seem to know nearly as much about economics as people who need to borrow money.
Read IMF's 2010 projections when they did the original bailout. Off by a little bit... Like 30% of GDP... But hey, creditors know their stuff.
Maybe, but he's still getting money for promises, including some things promised once or twice before.Never assume malice when simple incompetence will do. The terms of the new Greek proposal include much more austerity than the terms they just rejected from the creditors recently, so unless that's just part of their diabolical plot to max out their borrowing before default it's impossible to say that Tsipras didn't lose huge.
Read Tsipras' proposal summary, specifically where he promises to do some of the stuff they promised to do in 2010 and 2012. This is hardly one party tied to the railroad tracks and the other twirling his long thin mustaches.Read IMF's 2010 projections when they did the original bailout. Off by a little bit... Like 30% of GDP... But hey, creditors know their stuff.
Read Tsipras' proposal summary, specifically where he promises to do some of the stuff they promised to do in 2010 and 2012. This is hardly one party tied to the railroad tracks and the other twirling his long thin mustaches.
I guess they don't care about getting their money back either, since they insist on crashing the economy of their debtor with austerity and making repaying of their own debt unsustainable.
Maybe, but he's still getting money for promises, including some things promised once or twice before.
Read Tsipras' proposal summary, specifically where he promises to do some of the stuff they promised to do in 2010 and 2012. This is hardly one party tied to the railroad tracks and the other twirling his long thin mustaches.
What facts are those? That Greece would be fine and eventually be able to pay off their debts if everyone just keeps lending them money?Haha. "Austerity was a total failure but I'm sure it would have succeeded with a little more austerity".
It's amazing how little impact facts have on ideology sometimes.
What facts are those? That Greece would be fine and eventually be able to pay off their debts if everyone just keeps lending them money?
Do you think that the fiscal multiplier for spending in Greece is above or below 1 right now? Once you answer that you've answered your own question.
“The problem with socialism is that you eventually run out of other people's money.”
― Margaret Thatcher
The problem with socialism is that you eventually run out of other people's money.
― Margaret Thatcher