The Agreement between Eurogroup and Greece summed up in 5 points :
Friday evening , the Eurogroup and Athena found an agreement which entails the prolongation of the support program until June, under the condition that Alexis Tsipras presents new measures on Monday. Explanations in 5 points
- Germany got what it wanted… for now
“These last weeks , Germany insisted on the fact that she will not abandon the support program for Greece” recalls the Wall Street Journal. While the Greek Prime Minister , was first against the prolongation of this plan , he finally asked for an extension – which will last until June- and promised that he will respect the conditions.
- Athena should benefits from a greater indulgence
The Eurogroup will grant Greece a greater flexibility to attain its fiscal targets in 2015. Moreover , the Agreement does not impose to Athena to respect these same objectives for the following years. This aspect , was one of the will of Alexis Tsipras.
- The Agreement could collapse.
Monday, Athena would have to present to the Eurogroup , a list of reforms to respect the balance of its public finance. These reforms should be more or less similar to the one that the previous government engaged himself to pursue. Alexis Tsipras already announced that he wanted to cancel or modify some of those reforms, and among those reforms , the one he rejects totally is the one concerning the diminution of retirement pensions, which is one considered vital by the Eurogroup.
- Greek politicians could reject the Agreement
It seems that the agreement is conflicting with certain campaign promises of the Greek Prime Minister. With this agreement , Greece would indeed stay under the surveillance of the European Comission , of the IMF and of the European Central Bank , contrary to one of the major promise of Alexis Tsipras during his campaign.
- Greece will need more money
Given the fact that the Greek fiscal surplus , should be lower than expected in the coming years, Athena will need money. The Eurozone already announced that they were ready to reduce the interests rate of the funds they granted to Greece, but this will probably not be enough.