The austerity plan proposed by Greece has failed to satisfy the troika of international inspectors, sending Greece back to the drawing board to find new cuts that will meet the demands of creditors.
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Approximately €2 billion euros worth of cuts and proposals to increase revenues over the next two years were rejected by the inspectors.
Leaders from the Greece’s governmental coalition including the Democratic Left, the socialist Pasok party, and the conservative New Democracy will meet on Wednesday to try to come up with alternatives. The leader of the New Democracy party said that Greeks have reached the limits of their endurance with the imposed austerity measures.
Greece’s finance minister met Sunday September 9 with officials from the troika consisting of the European Central Bank (ECB), the European Commission, and the International Monetary Fund (IMF) to discuss the new measures. The troika said this is only the beginning of talks expected to last several weeks.
Meanwhile, the first large-scale protests against the austerity measures
occurred on Saturday through the streets of Thessaloniki. There were from 30,000 to 35,000 protesters against the austerity measures, which would cut pensions, health-care benefits, and pay for public workers significantly.
Greece is depending on a favorable report from the troika to get the next tranche of aid as well as a possible two-year extension on meeting the austerity provisions laid out by the troika.
It will be interesting to see how these talks develop in light of the ECB's recently announced plan to bolster distressed economies with easier monetary policy.