After many months of financial instability, it looks as if a brighter future is on the horizon for Greece and its inhabitants. Up until this point, the country’s debt crisis has not seen a final resolution, but it appears that this may change soon. In fact, the nation’s government is hopeful that such a resolution can be reached before the end of 2016.
An End To The Greek Debt Crisis?
Whenever politicians discuss a potential solution related to a debt crisis, they do not necessarily solve the problem. It is true that Greece received a big bailout package to restore its economy, but the underlying problem has never been addressed. More debt relief is needed in the short-term, which will be discussed coming Monday in Brussels.
Pumping a lot of money into a leaky economy is never the answer to a problem. For the time being, it appears that the plan is to issue proper financial reforms in Greece, rather than continue down the path of debt. Whether or not that is possible remains anybody’s guess for the time being, though.
Greece is optimistic about their final debt deal, which is rather strange. The impending Italian constitutional referendum vote may push the Eurozone into the next crisis, which would spell disaster for Greece. Europe needs to sort its business, and continuing to deal with a lingering crisis in one nation is not in the Zone’s best interests.
It has to be said that Europe is filled with uncertainty where both politics and finances are concerned right now. Coming up with a permanent solution for the Greek debt crisis may put some minds at ease, or it could only make things worse. It all depends on where the priorities lie for individual politicians who have a say in these matters.
Solving such a problem requires cooperation from both sides, which has not always been the case for Greece. Discrepancies on labor reforms, including a bargaining on minimum wage, is not helping the 23% unemployment rate. Moreover, the EU and IMF don’t see eye to eye when it comes to Greece’s fiscal targets after 2018.
To put it bluntly, Greece does not need more “free bailout money” right now. It is due time that the country gets its act together and starts adhering to the proposed guidelines. Otherwise, the next recession is just around the corner, and all parties involved will have to return to square one. Greece can either stay in the Eurozone or take its ball and go home.
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