Greek government weighs options following Tsipras, Merkel talks

Written by on December 18, 2016 in Europe - Comments Off on Greek government weighs options following Tsipras, Merkel talks

Following his meeting with German Chancellor Merkel in Berlin on Friday, Greek Prime Minister Alexis Tsipras appears to have a dilemma to consider: he could strive for a compromise with creditors to swiftly conclude the ongoing review of the bailout program; or denounce the tough proposals put forth by creditors and go to the people, risking a heavy defeat for his government.

Analysts point out that Angela Merkel politely but carefully limited Tsipras’ options to the above two scenarios as she ruled out striking the “political deal” Tsipras would have wanted to help him avoid implementing more austerity.

It is now most likely that negotiations with the country’s creditors – the European Commission, the European Central Bank and the International Monetary Fund – will continue well into January 2017. Athens can hope for the social benefits it recently legislated will be signed off by creditors as the German Chancellor too showed understanding especially for the measures designed to help Greek islanders who have been affected by the refugee crisis.

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