The Greek crisis

Jacq, citing two periods of significant rises in bond yields.

And analysts agreed that Greece played no role in those surges, which began before a Greek euro exit had become a serious possibility.

“There were several catalysts, including better than expected economic statistics and declarations by market heavyweights arguing rates were too low and calling for a sell-off. That’s when the market took off,” said Jacq, who anticipates more placid activity in the near term.

“The summer should be calmer [...] but come September - between the looming rate rise by the US Federal Reserve and negotiations on Greece’s debt restructuring - volatility could make its return,” said Robin. Stability Mechanism (ESM), the eurozone permanent crisis resolution fund that was initially set up five years ago in an effort to save Athens from bankruptcy. Here is a look at what Greece has to do: - request continued support from the International Monetary Fund after its current IMF programme expires in early 2016;

- streamline consumer tax and broaden the tax base to increase revenue;

- make multiple reforms to the pension system to make it viable. Initial reforms are due now, others by October; - safeguard the independence of the statistics agency; - introduce laws that would ensure “quasi-automatic spending cuts” if the government misses its budget surplus targets;

- overhaul the civil justice efficient and reduce costs;

- carry out product market reforms that include allowing stores to open on Sundays, broadening sales periods, opening up pharmacy ownership, reforming the bakeries and milk market and opening up closed and protected

system

to make

it more professions, including ferry transport;

- privatise the electricity transmission network operator, unless alternatives with the same effect can be found;

- overhaul the labour market, which includes reviewing collective bargaining, industrial action and collective dismissal regulations;

- tackle banks’ non-performing bank governance;

- increase the privatisation programme, transferring EUR 50 bln worth of Greek assets to an independent fund, based in Greece, to carry out the privatisations;

- modernise, strengthen and reduce administration;

- allow members of the institutions overseeing Greece’s reforms - the European Central Bank, IMF and European Commission, previously known as the ‘troika” - to return to Athens and consult with on all relevant draft legislation before submitting it to public consultation or to parliament;

- reexamine, with a view to amend, legislation passed in the last six months that is deemed to have backtracked on previous bailout commitments.

loans and

strengthen

the

costs

of