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The crazy reason we might be facing a huge crisis in Greece again - The Washington Post
Keywords:
IMF's differences with Greece and Germany on relative weight of tax hikes and cuts to pensions for the Third Bailout Program accepted by Greece in July 2015. The IMF wants to see further cuts in pensions, the Tsipras centre- left government in Greece is committed to protecting pensioners and the poor, and has agreed to tax hikes that do not put a disproportionate burden on the poor and working class. The IMF fears the relative weight on tax hikes for generating a surplus to pay down debt could hurt prospects for economic growth.
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Charities are having difficulty importing food and supplies to run the soup kitchens and other facilities to help the poor following the impostiion of capital controls. Income inequality in Greece is one of the highest in Europe, with the poor and working class suffering during the crisis. Even if a new bailout is negotiated the humaintarian needs in Greece will increase, say experts.
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The IMF calls for more pension cuts than tax hikes. Greece's new government of centre left Alexis Tsipras wants to minimize the burden on retirees and the poor. Germany sees no problem as long as Greece can maintain sufficient surplus to pay down debt under its bailout program of 2015 with the Tsipras government. Germany maintains that its fairness is reflected in the lower interest rate and repayment terms that extend over many years. After elections in Jan 2015, again in Sept. 2015, and a referendum in July 2015, and a refugee crisis in Europe, much of Europe is weary of facing another debt crisis, so experts see some form of negotiated settlement of differences.
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