The collapse of the Athens Stock Exchange came to confirm the serious consequences and loses of the previous, barren for the government, period. It also revealed to all how charged the climate is for the Greek economy.
The mass selling off of shares is indicative of the lack of trust and a powerful signal of what is to come, unless there is a positive development in the ongoing negotiations with the creditors and partners.
In such dire conditions it is however encouraging that the negotiations are quickly progressing and that there are good intentions documented from both sides. Confirmed sources from both sides note that the talks are intensive and constructive.
As it would appear, Mr. Varoufakis’ approach seems to have been fully rebutted and his successor Mr. Tsakalotos is on the same line with the creditors. Indicative of the positive climate are the many meetings between government ministers and institutions experts.
Everything suggests that they have been instructed to facilitate the negotiations so that they conclude in an agreement as soon as possible. The agreement must be comprehensive and organized, with outlined prior actions and measures that will guarantee its proper implementation on a three-year basis, which is how long the new memorandum and loan agreement will last.
The documents being prepared suggest a full memorandum, according to which payments will be made according the measures and regular reviews. No funds will be aid out without measures being adopted and implemented as planned accordingly and on time.
The aim is to reach such an agreement with the aforementioned characteristics by mid August, so that it coincides with the first prior actions to be voted for in Parliament, the latest by the 17th of August.
Those in the know argue that this may seem difficult, but based on the progress of negotiations it appears to be possible.
The government does not have any other options, as revealed by the opening of the Athens Stock Exchange on Monday. A potential failure in the negotiations will result in a total financial catastrophe. There is no turning back now.
It is imperative to complete the negotiations within the deadline, so that it may pass through Parliament in time and the country can restore its functions as quickly as possible.
Otherwise chaos looms and the financial and other loses with be profound and unbearable for the Greek people.
TO VIMA