Greek PM Tsipras says there is no going back to austerity

Greece will not accept any return to austerity, leftist Prime Minister Alexis Tsipras said on Monday, adding that he was convinced he would strike a deal with international partners to keep finances afloat.

“The key for an honorable compromise (with the EU/IMF creditors) is to recognize that the previous policy of extreme austerity has failed, not only in Greece, but in the whole of Europe,” Tsipras told daily Ethnos in an interview.

Greece’s left-wing government won elections in January on a pledge to roll back budget rigor and renegotiate the terms of a 240 billion euro bailout. But it has faced resistance fromeuro zone partners who are unwilling to offer major compromises.

Although Athens has been granted a four-month extension to the bailout deal, the Feb. 20 accord did not give Greece access to aid pledged to it from the euro zone and the International Monetary Fund, which has led to a cash crunch.

To obtain the remaining aid, Athens must agree on a revised package of reforms. With cash running low, the government has sought to issue more short-term debt, but the European Central Bank has so far refused to give its green light.

Tsipras said the bailout policies of the last five years had led to an unprecedented recession, record unemployment and a humanitarian crisis. Athens could find common ground with its partners based on its proposed reforms, but talks remain tough.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam