Euro zone finance ministers reached the hard-won deal in 240 billion euro EU/IMF bailout program after a four months long tense talks,that pitted the new radical leftist government in Greece against an angry Germany. The deal have granted Greece a crucial four-month extension to its massive debt bailout, ending weeks of tension, but at the cost of huge concessions including a commitment to spell out reforms within two days.
Euro nations were suspicious that Greece was looking to ditch its austerity obligations, but now it has agreed it will submit a list of economic and other reforms by Monday when its euro zone partners will review to see if they go far enough.
The specifics of the deal will be a hard read in Athens, especially for supporters of the ruling Syriza party who had hoped for the end of the austerity and creditor oversight so loathed by the Greeks, as Greek Finance Minister Varoufakis said,"The Greeks left behind the memorandum and are becoming the co-author of reforms and of their destiny," referring to the stringent cost-cutting measures and reforms attached to the original bailout.
INDIA HONEST, though maintains a sceptical note on the deal,but still hopes that let this become a path finder for the ongoing Confidence Crisis in Euro zone, and pave way for other sick economies of Spain,Italy and more members of Euro group.........to stand together and survive.
Athens had claimed earlier that the rescues and the austerity measures it had to follow since its first 2010 bailout had wrecked the Greek economy, making it impossible to manage its mountain of debt, logically a similar state of affairs also found in our state Bengal.
More over the big take down in Indian context will be for the TMC led Bengal government's debt crisis.But will they follow a path of austerity in dolling out huge funds in political doll out and still approach the powerful Centre, a Germany in Indian context.
A timely reform in policies and in budgeted measures can still give better results to Bangla economy, where depression is continuing for lack of funds for investment in development plan,and it may be a big change in thinking just ahead of the people verdict test due in 2016.