Greece bailout deal: Backtracking on promises?
Athens claims success in comprise reached with creditors that would end austerity, but new reforms could be costly.
The leader of Greece’s left-wing Syriza party campaigned on a promise to scrap harsh austerity measures imposed by its European creditors.
A little over five weeks into the job, and Alexis Tsipras, the prime minister, is already putting a brave face on a compromise deal with Europe’s lenders.
The agreement was reached in Brussels on Friday to give Greece more breathing space to manage its debt.
It means Greece stays signed on to the existing bailout for another four months, something the government was adamant it would not do.
In return, Athens will be allowed to choose what economic reforms it will make, governing things such as pensions and tax collection.
It was given 48 hours to come up with a plan, which will then be subject to the eurogroup’s approval.
The hope then is that both sides can build up enough trust to reach a bigger deal in the months ahead, with more reforms traded for less austerity.
Addressing the nation, Tsipras sold the compromise as a victory, saying: “We took a decisive step, leaving austerity, the bailouts and the troika … Greece achieved an important negotiating success in Europe. We showed determination and flexibility and in the end, we achieved our basic goal.”
But what price is Greece’s new government prepared to pay to satisfy its people – and its paymasters?
Presenter: Martine Dennis
Guests:
Eleni Panagiotarea – Research Fellow at the Hellenic Foundation for European and Foreign Policy.
Nina Schick – Communications Director for Open Europe and an EU policy analyst.
Eleonora Poli – Researcher at the Italian Institute for International Affairs.