A reasonable agreement

Greece cannot and should not allow itself to be left without a safety net to make up for any funding needs that may crop up after the end of the year. Without such protection it would be at serious risk as that would create a lot of problems for the country’s banks and the economy as a whole.

Negotiations between the Greek government and the country’s international lenders are in an extremely difficult phase and, especially when it comes to the need for more fiscal measures, are bordering on the ludicrous. One way that the government could strengthen its position would be to assure the lenders that all the reforms that have already been ratified will be fully implemented.

If the government manages to placate the lenders it will then be able to face the troika with confidence and press for a reasonable and sustainable solution for the future.

Of course this presupposes that the troika is not secretly conducting some experiment into how to create chaos.

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