1. Home
  2. Press
  3. IW News
  4. Finally a compromise?
Show image in lightbox Finally a compromise?
(© Photo: PAVLE MARJANOVIC - Fotolia)
Greece IW News 10. July 2015

Finally a compromise?

Yesterday night the Greek reform proposals reached the creditors. Surprisingly, the new reform agenda goes beyond the propositions starkly rejected in a public referendum last week. In return, Tsipras demands a three year financial assistance program. If an agreement is struck Greece must make good use of the three years to actually implement structural changes.

A compromise between Greece and the three creditor institutions suddenly appears to be within reach. Only yesterday the new reform agenda was developed under the supervision of French negotiators.

However, the Greek parliament has to back up president Tsipras giving him the authority to strike a deal for a new bail-out program. For the Greek propositions are extensive and comply with most creditors’ demands that were strongly opposed during the last weeks: The controversial Greek primary surplus target was accepted. Raising value added tax, shutting-off tax loopholes on islands and increasing luxury tax are supposed to generate extra-revenues; disincentivizing early retirements, privatizing infrastructure and state owned companies as well as reducing its military budget, on the other hand, are the key saving measures.

The requested three year 53 billion Euro bail-out program would reduce investors’ sky-rocketing uncertainty. Fortunately, this time burdens placed on companies are raised not disproportionately. Finally, fostering international competitiveness can only work out if private business comes back to life.

After Tsipras gambled away his counterparts’ trust in a viable solution, now he has to grasp his last opportunity. Why reforming the public sector and fighting corruption has not yet started constitutes a Greek secret. What is more, it remains a mystery for what reason the Greek government opposes reform propositions for month and finally, proposed these very reform word by word.

More on the topic

Read the article
Flaggen der Ukraine und der Europäischen Union (EU) mit blauem Himmelshintergrund
Berthold Busch / Samina Sultan IW-Report No. 63 11. December 2023

Fiscal aspects of an EU-enlargement

Following the European Commission's recommendation to open accession negotiations with Ukraine, the European Council will decide on this at its summit in December. This is a historic step that is of great geostrategic importance, particularly in light of the ...

IW

Read the article
Sandra Parthie Event 6. December 2023

Runder Tisch: „Unternehmen in der Bürokratiefalle?”

Der Bürokratieabbau ist zurück auf der politischen Agenda. In ihrer "State of the European Union"-Rede, erklärte ihn Kommissionspräsidentin Ursula von der Leyen jüngst zur Chefsache. Entlastungen für den Mittelstand waren bereits Thema ihrer Rede im letzten ...

IW

More about this topic

Content element with id 8880 Content element with id 9713