The Situation in Greece Continues to Worsen Amidst Talks of a Snap Election

Our Take!

Greece has become the poster boy for what can happen to countries who behave without fiscal restraint. I know it sounds crazy, but governments really CAN’T spend as much money as they want for as long as they want without consequences.

By Helena Smith and Jennifer Rankin

Greece has confirmed it will this week repay a €450m (£330m) International Monetary Fund, as the worsening greek debt crisis has reanimated talk within the ruling Syriza party of a snap general election if ongoing discussions with creditors fail.

The Greek finance minister, Yanis Varoufakis, held informal talks with the IMF’s managing director, Christine Lagarde, in Washington DC on Sunday, and Lagarde said he confirmed that the repayment would be made on Thursday.

Meanwhile, warnings of early elections underscored the political unrest in Athens. Varoufakis told the Naftemporiki newspaper on Monday that Greece must reach an outline funding agreement with its lenders at a meeting of euro zone finance ministers on 24 April.

The slow pace of negotiations with creditors and worsening state of the Greek economy brought a warning from the far-left Syriza of snap polls being held before the summer – just months after winning power.

“If we are not satisfied [with the outcome] we will go to the people,” Kostas Chrysogonos, a prominent Syriza MEP told local media at the weekend. “We have a popular mandate to bring about a better result,” he said of the talks aimed at concluding a reform-for-cash programme to keep the crisis-hit country afloat. “If, ultimately, creditors insist on following an inflexible line … then the electoral body will have to assume its responsibilities.” READ MORE …

[Published by The Guardian (UK)]

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