Greece gets its deal

Avoids fi­nan­cial col­lapse and euro exit

The Guardian (Charlottetown) - - WORLD -

Af­ter gru­el­ing, of­ten an­gry ne­go­ti­a­tions that tested the lim­its of Euro­pean unity, Greece on Mon­day won a pre­lim­i­nary deal that averts fi­nan­cial catas­tro­phe but also guar­an­tees years more of hard­ship and sac­ri­fice for its peo­ple.

Prime Min­is­ter Alexis Tsipras flew home to sell the plan to skep­ti­cal law­mak­ers and po­lit­i­cal al­lies, some of whom ac­cused him of putting Greece at the mercy of its for­eign cred­i­tors.

To close the deal with its part­ners in the euro cur­rency, Greece had to con­sent to a raft of aus­ter­ity mea­sures, in­clud­ing sales tax hikes and re­forms to pen­sions and the labour mar­ket.

Enough of Greece’s 18 eu­ro­zone part­ners were openly sus­pi­cious of its sin­cer­ity that they de­manded, and got, Tsipras’s com­mit­ment to ac­cept close in­ter­na­tional over­sight.

For the Greek leader and his rad­i­cal left-wing gov­ern­ment, which since elec­tion in Jan­uary had vowed to stand up to the cred­i­tors, the pay­off of the marathon ne­go­ti­a­tions in Brus­sels was clear: about 85 bil­lion eu­ros ($95.07 bil­lion) in loans and fi­nan­cial sup­port over three years, pre­serv­ing Greek mem­ber­ship in the euro, and help­ing their coun­try stave off fi­nan­cial col­lapse.

“We man­aged to avoid the most ex­treme mea­sures,” Tsipras said af­ter the sum­mit.

Tsipras said he suc­cess­fully got cred­i­tors to drop a de­mand that Greek as­sets be trans­ferred abroad as a form of col­lat­eral, and that the deal reached was less harsh than pro­pos­als from cred­i­tors his coun­try’s vot­ers re­jected a week ago.


A bank em­ployee dis­trib­utes tag queue po­si­tions to el­derly peo­ple to en­ter into the bank to with­draw a max­i­mum of 120 eu­ros ($134) for the week in cen­tral Athens Mon­day.

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