Thursday, October 1, 2015

While in New York for the UN General Assembly, Greek Prime Minister Alexis Tsipras spoke to Wall Street Journal editors, emphasizing that "if there is a good decision on the debt issue, Greece could return to markets shortly after debt restructuring".

He noted that the deal struck with international creditors earlier this summer was necessary to avoid a catastrophic exit from the eurozone and that aspects of it are an improvement to earlier bailout programs: "The agreement, for the first time, has a realistic approach; the adjustment is milder". 

Tsipras added that the country was expected to return to growth in the second half of 2016 but that Europe’s refugee and migration crisis could harm its fragile economy—particularly its vital tourism industry. He urged Europe to act swiftly and with solidarity in its response to this crisis: "United Europe won when the wall fell in Berlin; if we build walls in Europe now, this is not the Europe of our common future". 

In a recent interview with the FT, Finance Minister Euclid Tsakalotos was optimistic that Greece will return to growth by 2016, provided that the government adopts reforms that satisfy its international creditors, paving the way to bank recapitalization and debt relief.

Tsakalotos underlined that "it’s absolutely critical that we get something on debt relief", explaining that that "if Greece gets a positive first review by creditors, the government will aim to open debt relief negotiations before Christmas".

The minister stressed that this government will make a serious effort to crack down on wealthy oligarchs suspected of tax evasion, because "policies that show we’re all in the same boat are the only way the Greek people will accept difficult measures".