"The threat as a possibility must always be there and is still there," Klaus Regling told a news conference in Berlin. In short, the numbers must add up.
And those numbers, as follows, are the conditions set by the Troika for the Mediterranean country to remain in the currency union.
#Syriza claims its deal with the Troika will spare the middle and lower classes, yet they will hike the VAT from 13% to 23%— Drak Doraleous (@widar01) 25 июня 2015
Greece must raise VAT to generate $334 million (€300 million) in 2015 and $1.78 billion (€1.6 billion) in 2016. A supplement added to income tax has also been included to raise $247 million (€220 million) at the end of this year.
Pensioners will be restricted from early retirement, saving the government $66 million (€60 million) this year and $33.4 million (€30 million) in 2016. Increasing pension contributions will raise $390 million (€350 million) this year and $891 million (€800 million) next year.
Higher health contributions from pensioners will also contribute $150million (€135 million) in 2015 and a further $568 million (€510 million) in 2016.
If, and only if Greece manages to stick to these conditions, will the country remain in the currency union and receive $93 billion (€86 billion) in bailout money — there's no escaping on a magic carpet.
ECB Rubbing the Bottle
During a talk in Paris, Benoît Cœuré, member of the Executive Board of the European Central Bank (ECB) addressed the impact of the Greek situation, adding that "the recent negotiations in Greece have let the evil genie of a country exiting the euro area (even temporarily) out of the bottle."
"The genie will not be put back in its bottle once and for all until it is clear that such a risk will not rear its head again".
And with the gap between political parties in Greece increasing and 53 members of the central committee resigning to join rebel left wing groups, Greece's economic destiny remains uncertain.
SciFi?? Syriza implodes Lafazanis welcomes all those who have U-turned a couple of times already ND 1st A back-to-hard-line "New Syriza" 2nd— Ilias Siakantaris (@iliassiak) 27 августа 2015
One such rebel group, Popular Unity, led by former energy minister Panagiotis Lafaznis has pledged to abolish the bailout program, cancel austerity plans, exit the Eurozone and bring in a new currency.
“Greece is not for sale”, Lafaznis told reporters.
Following the resignation of Prime Minister Alexis Tsipras after just seven months in the job, Greece’s president has appointed the head of the country’s Supreme Court as PM to lead a caretaker government. Elections are to be held next month.
This certainly leaves the Grexit genie out of the bottle and loitering in the wings until political stability returns to Greece — the drama continues.