Will Greece survive its current economic crisis?

Grexit, Graccident or another aid package - what do the Greeks want?

The current reform list with around 18 measures is expected to bring Greece in at least three billion euros. The main focus is on fighting tax evasion, while cuts in salaries and pensions should not be one of them. According to reports, an increase in the maximum tax rate to 45 percent, a new real estate tax, an increase in VAT for luxury goods, the fight against tax evasion by connecting all cash registers with the tax office, privatizations and the control of all money deposits by Greeks abroad are planned.

Shortly before the negotiations began, Prime Minister Alexis Tsipras' government increased pressure and threatened default. Tsipras also called for a haircut. What is needed is a "change in the repayment terms of the debts and their reduction," he told the Athens Sunday newspaper "Real News". What is meant are lower interest rates, later maturities and a de facto waiver by the lender of part of their claims.

Greece is a top priority

Meanwhile, the US rating agency Fitch lowered its assessment of the creditworthiness of the bankrupt euro country Greece by two notches to "CCC". Even before that, according to the experts, Greek bonds were only suitable for speculators (“junk”).

The Greeks are withdrawing more and more money from their accounts in the face of the severe financial crisis. According to bank statements, the deposits fell to the lowest level since the outbreak of the debt crisis, reported the conservative newspaper "Kathimerini" on Saturday. According to a survey, almost 44 percent of Greeks are afraid of their country leaving the euro area (“Grexit”). This was the result of a survey by the polling institute of the University of Thessaloniki, which the Athens newspaper "Kathimerini" published on Sunday.

Greece is dependent on emergency loans, which the ECB has to re-approve on a regular basis. Economist Carsten Brzeski is convinced that Greece can only prevent the state bankruptcy thanks to ECB aid. "The ECB holds the key to the Grexit in its hand," said ING-Diba chief economist at the German Press Agency in Frankfurt. The ECB is keeping the country's banks alive by constantly increasing the scope for Ela emergency loans.

Regardless of the reform list, the tug of war for 1.2 billion euros in bank aid money continues. Athens claims that it has repaid too much parked aid money to the euro crisis fund in Luxembourg for the bank bailout and is demanding money back.

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