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Germany and France to Discuss Extension Allowance to Greece

in International Business

Germany and France to Discuss Extension Allowance to Greece

German Chancellor Angela Merkel and French President Francois Hollande are set to have talks on allowing more time to Greece to make the cuts required by its debt bailout.

Greece, being on its fifth recession at the moment, is in need for a second bailout package of 33.5bn Euros.

The second installment depends on the troika’s assessment of Greece’s progress thus far.

The “troika” of donor bodies monitoring the bailout – the International Monetary Fund (IMF), the European Central Bank (ECB) and the European Commission – are due in Athens next month to report on whether Greece has made enough progress.

Greece’s Prime Minister Antonis Samaras is seeking a two year extension to enable the country to have “a little breathing space” in order to kick-start growth and reduce its deficit.

The country has to put in place structural and economic reforms including maneuvering labor market and renewing privatization drive in order to qualify for the second bailout package.

At least publicly, many EU leaders have remained supportive of Greece’s stay in the Eurozone. However, if Greece defaults, it could result in its automatic exit from the Eurozone.


Tags assigned to this article:
Greece bailout

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