The Greek government is rushing to complete the evaluation of the bailout program in order to receive the crucial loan tranche and start talks on debt restructuring.
The differences between creditors and the Greek side must be resolved as soon as possible, meaning that the fragile SYRIZA-ANEL coalition must take immediate austerity measures and deal with strong reactions from Greek society. The measures will have a dire political cost for the government as several social groups show their distress.
The government will have to agree to deep pension cuts, tax hikes, selling of bad loans to distress funds and a quick establishment of an independent privatization fund.
Prime Minister Alexis Tsipras is having continuous meetings with his cabinet in order to prepare the draft bills required. At the same time the escalation of the refugee crisis is creating more problems for the government as well as social dissatisfaction.
Euro Working Group chief Thomas Wieser said that lenders estimate the review of Greece’s bailout program will be completed by late April, or early May. Wieser connected the agreement between Greece and creditors to debt easing.
Also, the Greek government awaits the European Union summit on March 17-18 where final decisions will be taken on the refugee issue and Greece’s obligations on the matter.i
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