Greece’s partners, including those most dedicated to fiscal discipline, are beginning to comprehend that austerity is not a cure-all.The pandemic requires a Keynesian approach to managing the economy.
Lagarde’s position reminds us that a wave of populism permeated Greek politics in large measure because it found fertile ground by exploiting the excessive demands of creditors.
Regarding the migration-refugee issue that has bedeviled Greece the two leaders expressed agreement on the way to handle it.
The message from creditors was first move forward with reforms so as to give the economy a strong growth impetus and then one can discuss changing targets.
The cost of the package of measures announced by the PM is between 1.1 and 1.4 percent of GDP annually, which could exceed five billion euros over two years.
Tsipras announced the package fewer than three weeks before local elections and European Parliament elections, which he has described as a vote of confidence in the government.
The Commission appears to be open to the government’s intention of rescinding a law that provides for a lowering of the tax-free threshold as of 1 January, 2020
The government has shaped an artificial reality in order to boast of its achievement even as the economy totters.
The government agreed with creditors on high primary surpluses which it hiked even more so that it could distribute poverty benefits.