The long and winding road to reform Greece’s economy

The world breathed a sigh of relief when Greece accepted a four-month extension to its current bailout programme on the 20 February 2015. After much political rhetoric to the contrary, newly-elected Syriza promised to continue with reforms. The deal is such that the vital last injection of cash that is propping up its economy – worth €7.2 billion – will only be delivered when these reforms are in action.

In fact, the deal requires not only that the old reforms of previous bailout programmes continue, but that new ones are implemented. They are squarely aimed at making the Greek economy more productive. But agreeing to these reforms required Syriza to go against its mandate of ending austerity. For this reason we cannot rest assured that the path to economic reform will be plain sailing.

ESO: Background information: Greece has sent reform plans, a 'valid starting point,' says EU source http://www.europeansources.info/record/greece-has-sent-reform-plans-a-valid-starting-point-says-eu-source/

EurActiv, 18.03.15: Greece hits out at EU opposition to 'humanitarian' law http://www.euractiv.com/sections/social-europe-jobs/greece-hits-out-eu-opposition-humanitarian-law-312991

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