Monday, July 13, 2015

Greek Deal Clear Winners and Losers Means Failure Likely

The agreement includes a 50 billion euro fund using Greek government assets. These assets will be used to pay down the country's debts and refinance its banks. A panel of 'experts' (likely individuals with connections to parties interested in acquiring assets at favorable prices) would decided which assets will be used and how the funds will be monetized. Some 25 billion euros of the fund are expected to be used to recapitalize Greek banks, which have been operating under capital controls for over a week.

EU leaders were quick to point out that the 'compromise' contained no winners or losers and that the Greek people have not been humiliated or lost face in this typical European arrangement. Headlines have been focusing on these points, while less optimistic comments by Labor Minister Panos Skourletis suggesting that the terms that including spending cuts, tax hikes, pension reforms, and the same old austerity policies that's crushed the Greek economy, people, and stripped the nation of its sovereignty must be endorsed by parliament and enacted by Wednesday night (good luck with that) were "unviable" and would lead to new elections this year have been ignored.

Why has Tsipras, only a week after the Greek people rejected the policy of austerity, accepted more of the same? Don't be surprise that Greece not only rejects these terms but also organizes new elections soon.

Headline: Euro zone strikes deal with Greece after all-night struggle

Euro zone leaders clinched a deal with Greece on Monday to negotiate a third bailout to keep the near-bankrupt country in the euro zone after all-night talks at an emergency summit.

However, the terms imposed by international lenders led by Germany may put more pressure on leftist Prime Minister Alexis Tsipras, fracture the government and cause an outcry in Greece.



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