The Economist magazine reported on troika’s upcoming return to Greece. Entitled ‘The Troika is Coming: Greece’s new government is scrambling to find more spending cuts,” the editor comments that “Greece tried but failed to find €11.5 billion of spending cuts demanded by the EU and IMF as part of the country’s second international bail-out.”
“Greek ministers trimmed their budgets but didn’t realize they needed to be slashed,” continued the report.
According to the magazine, the three governing parties, New Democracy, PASOK and Democratic Left, face now a difficult situation. They failed to raise the money needed by the bailout agreement and thus, they will soon have to apologize to their voters for their ineffective decisions.
The same report adds that the Greek Orthodox Church will also be told to limit the wage costs for priests by half, “despite earlier reassurances that the state would continue to foot the entire bill.”
The editor concludes that the moment of truth for Mr Stournaras comes on July 26th, when he will meet the troika officials to present the package of cuts. If they are not pleased with what Mr Stournaras brings, they may suggest their own measures.