Monday, February 23, 2015

BBC: Greek Government Delays Reform Plan Deadline

When I saw the headline for this BBC story, I had to chuckle a little. We had just done an update post on Greece where we made this comment:

"Deadlines these days are not really deadlines. They are just days that arrive so that new deadlines can be announced."

This is just a one day deadline delay, but it was still kind of funny. Below are some quotes from the BBC article. Most assume that this deal will go through thereby kicking the can down the road for another four months. Whether the Greek people will go for this deal remains to be seen. We probably won't know that for awhile.
From the BBC article:

"Greece will send a list of reforms aimed at securing a bailout extension to EU partners on Tuesday morning, missing a Monday deadline, officials say.

The next few hours will determine whether last week's deal on Greece will hold or whether the two sides are still too far apart on the conditions needed for the loan extension.
The Greek government will prioritise clamping down on tax evasion and smuggling in its list of reforms, hoping that will avoid more cuts in the public sector and may free up money to rehire civil servants and increase social spending.
But Germany and others are likely to insist that past austerity measures are irreversible. The European Commission, IMF and European Central Bank will deliver their verdict on Tuesday. If there are deep disagreements, the deal could collapse.
The Greek government will continue to sell this to its voters as the first time it has a real say in the reforms it will take, but the reality is that the creditors will keep Athens on a tight leash and there is little room for manoeuvre."

. . . . .

"The four-month extension deal is widely regarded as a major climb-down for Prime Minister Alexis Tsipras, who won power vowing to reverse budget cuts.
In effect, the deal has kicked down the road some of the more difficult issues, like the future sustainability of Greek debt, the BBC's Chris Morris reports from Brussels."

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