The ‘Forgotten’ Greek Economic Crisis



is-europe-ready-for-another-greek-crisis.w_lEurope might seem to have lost interest in the Greek economic crisis due to the latest terrorist attacks and the refugee crisis but this doesn’t mean interest will not return. The same can be said about Germany’s Finance Minister Wolfgang Schaeuble’s critical and cautious mood.

The German Finance Minister seemingly still believes Greece should exit the Eurozone temporarily, despite the new bailout deal of 86 billion euros that has been decided and the Greek government’s substantial commitment to the implementation of the reforms.

On the other hand, what has changed, is that Schaeuble seems to have a much better and much more effective communication with his current Greek counterpart Euclid Tsakalotos compared to the one he had with Yani Varoufakis.

Recently Greece’s lenders have approved the disbursement of two billion euros and the gradual release of ten billion euros for the recapitalization of Greek banks. However, a new package of difficult reforms is imminent. Soon Greece and lenders will have to negotiate the controversial Privatization Fund and the pension reforms.

Moreover, the IMF has not yet progressed to a formal and binding statement on its participation in the new Greek assistance program. The active involvement of the IMF is of crucial importance for the German government. Even though serious doubts about the involvement of the IMF cannot be raised, the program’s evaluation has yet to be complete.