ECONOMY

Europe: No more aid for Greece unless Tsipras delivers

europe-no-more-aid-for-greece-unless-tsipras-delivers

Greece’s next bite of bailout money may turn into a movable feast if Prime Minister Alexis Tsipras can’t convince euro-area authorities he’s making good on his promises.

“Everyone got used to the fact the reviews take longer,” Lithuanian Finance Minister Rimantas Sadzius said in an interview.

“Everyone’s prepared to demand that agreements are implemented at 100 percent.”

European governments won’t rush additional aid until Tsipras delivers on pledges to fix Greece’s pension system, update its labor markets and close fiscal gaps.

A slow approach has already pushed borrowing costs to levels not seen since August and risks renewing last year’s conflict that nearly ended Greece’s membership in the euro area.

If Greece fails to unlock more funding it may face a cash crunch by the middle of the year.

[Bloomberg]