DEAL OR NO DEAL?: Some Troubling News About The State Of The Greek Bailout

Deal or no deal?Deal Or No Deal?

Photo: The National Guard via Flickr

We reported earlier this morning that Greek government officials and the troika had finally come to an agreement on the austerity measures requisite for the distribution of the second Greek bailout.But now a series of headlines are coming out about how this agreement might not really be as final as we were led to believe initially by the Greek PM’s office and European Central Bank President Mario Draghi.

Here’s what we know:

  • Bloomberg cites European Council President Jean-Claude Juncker as saying that there will be no “final decision” on the Greek aid package tonight at a meeting of eurozone finance ministers, adding that this is “not a disaster.”
  • German Finance Minister Wolfgang Schaeuble told Dow Jones that Greece needs a program that will curb its public debt holdings to 120% (presumably by 2020). It is widely believed that the current agreement will not accomplish that.
  • According to Greek broadcaster ANA, the Deputy labour Minister has resigned over the austerity deal. He’s a member of the ruling coalition, specifically the PASOK party.
  • Greek Finance Minister Evangelos Venizelos said that there is staff-level agreement on the terms of the troika deal, according to Dow Jones.
  • Also from Dow Jones, the Dutch Finance Minister and the IMF have both commented that there are still terms of the deal being worked out—specifically on how Greece will repay its troika loans. It also reports that Irish Finance Minister Michael Noonan said he doesn’t think a decision will be reached tonight at a meeting of eurozone finance ministers on whether or not to go through with the current aid package.

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