The topic looks to me never-ending, I have done more than 3 dozen of articles on the European crisis but it looks far from over. With no intention of hurting any body sentiments and due apologies to my friends in Greece and Europe.
It was time for the “Men in Black,” as the Greeks call them, to depart once again — without having accomplished anything. The troika, consisting of representatives of the IMF, the European Commission and the European Central Bank (ECB), had had enough.
The IMF envoy have ended their visit prematurely, and it’s also nothing new that they are unable to agree with their Greek counterparts over what is to be done. At the moment, the effort to rescue Greece is mainly characterized by one thing: a gloomy sense of déjà-vu.
They want to finally conclude the negotiations over a package of austerity measures designed to save more than €11.5 billion ($14.7 billion). It was supposed to have been concluded in June and is a condition for the second loan agreement. The government also hopes to collect €2 billion in additional tax revenues.
The measures yet need to be adopted by the government but the country have been wracked by new protests.
Still the EU seems determined to push forward with its strategy. For the IMF envoy from the European Commission and the ECB, Matthias Mors and Klaus Masuch, this makes the mission difficult if not virtually hopeless. Their task is to write a report that permits the creditors to disburse the next €31.5 billion tranche of aid money to Greece so that the near-bankrupt country can remain in the euro zone for the time being. This is what the politicians want.
The motives for rescuing Greece are transparent: The euro zone is in such bad shape, with the potential for serious meltdowns in Spain and Italy, that politicians are determined to avert a “Grexit.” The consequences of a Greek withdrawal from the euro zone seem incalculable, and the rest of Europe is terrified at the prospect. The domino theory is no longer being discussed as a possibility, but rather as a likely scenario. Europe’s leaders are determined to avert a total collapse of the euro zone.
Public service is no longer as attractive as it used to be, now that wages have been cut. The troika has checked and confirmed his estimate, and it will be mentioned in a positive light in its report.