It’s not over for Greece

Genevieve Signoret

Policy

The deal reached by Greece with the Troika last week is a stopgap measure only.

A deal for Greece

Greece reached a temporary deal last Monday 23 February with the Eurogroup, the IMF and the ECB to extend the current bailout program by four months. The deal commits the Greek government to complete the reform program previously agreed while giving Greece flexibility over its primary surplus target.

The primary surplus is the difference between government revenues and government expenditures not counting interest on the debt.

Now Tsipras has to sell it

In Athens, on 26 February several hundreds of people protested the deal and the new government. On Friday night, Mr. Tsipras­—the Greek prime minister—announced new legislation to be presented at the Eurogroup meeting on Monday 9. The legislation will include some of the agreed reforms but also some laws aimed at providing the Greek populace some relief. “The country has come out of this difficult and hard process of real negotiation stronger and more proud,” said the Prime Minister.

It’s not over for Greece

The Troika (the Eurogroup, the IMF and the ECB) must approve Greece’s reform plans before April for funding to start to flow into Greece. They and Greece will need to reach a permanent agreement before July.