Greece pushes on with "radical" economic policies

[globulon]

Greek PM Tsipras pushes on with radical change, markets tumble| Reuters

Prime Minister Alexis Tsipras, whose government was newly elected in recent Greek elections, is vowing to continue his promise of "radical" change. A series of announcements by the government has affirmed their pledge to roll-back austerity measures, pitting it against Germany and other EU countries who have said they would not re-negotiate the Greek bailout package. In response to his announcements, financial markets continue to fall.

 

[gmckee1985]

Yeah, I'm expecting the worst from Greece. They are definitely in for a bumpy ride. They refuse to fix the underlying structural problems of their society so they will likely struggle for a long while. Maybe they will wake up before its too late.

 

[Gabriel]

It will be interesting to see what their proposals are. Negotiations take a while of back and forth counter proposals so there is long way to go and and also whatever happens may also encourage other countries that have been bailed out to want to re-negotiate terms. It's not impossible and a political game will also be played as in which countries support Greece.

 

[Peninha]

That is something totally impossible to happen. He can say what he wants now, but if doesn't honor the agreements with the EU Greece will be kicked out of the EU with far worse consequences.

 

[TBDistrict]

From what I understand, Greece doesn't really care about being kicked out of the EU at this point. Everyone keeps saying they're extremely radical policies, but from what I understand or have heard (although a wait and see approach may work best), they plan on basically being the left's wet dream when it comes to economic policy: tighter tax policy focusing on the oligarchs, higher minimum wage, and more social support. I guess we'll see what happens since, in my opinion, the current version of capitalism we have here in the US is in a bit of hot water that's just gonna keep rising.

 

[DeltaForce103]

Structural changes have to be made to a political system that appears to be highly fragmented, lacks moderate voices, fosters extremists and protects a ruling economic and political elite before strong reforms in issues such as tax evasion are made possible. Syriza as a centre-left socialist party must be closer to an objective view of social issues plaguing the country than Golden Dawn. But investor sentiment on their economic policies is negative.

The source for the funding of social programs, increasing government hiring and other anti-austerity measures when the fiscal climate has barely changed is left unexplained. The eurozone reaction to the proposed "renegotiation" of debt has been forecast as overwhelmingly negative. It will be interesting to watch the next moves of this government.

 

[tournique]

That is something totally impossible to happen. He can say what he wants now, but if doesn't honor the agreements with the EU Greece will be kicked out of the EU with far worse consequences.

Don't think they can kick a country out of EU that easily though.

 

[Rowe992]

Well desperate times call for desperate measures and so if the prime minister is doing what is right for the future of Greece then I say kudos to him. Don't let the EU and the IMF drag Greece down with their proposals and austerity measures. The IMF only causes pain and suffering to the people of any nation they have influence over.

 

[Peninha]

Don't think they can kick a country out of EU that easily though.

It's not a matter of kicking a country out, Greece would have to decide to go out because there is not that option in the EU rules so to speak. So it's something really complex that can make the EU collapse.

 

[JPB_003]

I really hope Greece can get back on its feet, but it is looking bad. The people of Greece are obviously fed up, and this will lead to more radicalization on the left and right. Only the future knows what is going to happen.

 

[Peninha]

The main issue with Greece is that they promised the people something they can't deliver in my opinion, so I don't know what will happen, but when the people realize they were deceived the military will have to step in.

 

[TommyVercetti]

From what I understand, Greece doesn't really care about being kicked out of the EU at this point. Everyone keeps saying they're extremely radical policies, but from what I understand or have heard (although a wait and see approach may work best), they plan on basically being the left's wet dream when it comes to economic policy: tighter tax policy focusing on the oligarchs, higher minimum wage, and more social support. I guess we'll see what happens since, in my opinion, the current version of capitalism we have here in the US is in a bit of hot water that's just gonna keep rising.

That's a fair point. I still am not fully convinced though that what Tsipras promised was genuine. I believe it was just political rhetoric meant to appease his followers and put him in power. Just like that deal with Netanyahu.