Reprieve is only temporary

The Economy Ministry appears to have achieved a temporary truce with both the markets and Brussels in the most recent round of negotiations regarding the economy and structural reform plans. It is, however, important that the government now honor its commitments in relation to restricting government spending and freezing state employees’ salaries, as well as regulating a number of pending issues, such as closed-shop occupations. Greece plummeted to an all-time low in terms of its credibility because a succession of administrations announced or promised bold measures which they then lacked the courage to enforce. The difference between then and now, though, is that Greece stands at the edge of a precipice and the steep rise in interest rates of Greek bonds have the economy tottering. The next time the markets and the European Commission realize that the Greek government does not have the gumption to adopt meaningful financial measures and reforms, you can be certain that their response will not show the same degree of understanding.

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