A mediocre agreement is better than no agreement

Thanasis Stengos (University of Guelph, Canada) posted an article (in Greek) in Huffington Post Greece. We present it here, in the original Greek text and in English translation.

There have been five months since the January election in Greece and four months from the February agreement for the extension of the current program until the end of June. The negotiations between the Greek government and the lending partners (European institutions and IMF) have led nowhere as there has been a widespread belief in Greece that the Greek elections by themselves constituted a “game changer” and the other side sooner or later would have to compromise on its demands for additional fiscal adjustment measures needed to cover the existing revenue shortfall as well as necessary reforms that would facilitate future growth.

At the end of November the fiscal shortfall was of the order of less than a billion Euros (around 900 million), while currently its exact figure hovers over 5 billion. Read the full article.

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