Greece Got a 'Deal' in February, but Here's Why Things Still Haven't Calmed Down
On February 20th, the Eurogroup came to an agreement with Greece on a way to allow Greece access to further bailout funding.
The agreement covered the way forward for Greece and consisted of three main elements.
- Greece would come up with a set of budgetary measures that would allow a successful review by the institutions.
- Greece would then implement these measures.
- The institutions would disburse funding to Greece as successful implementation progressed.
With this deal in place, it briefly seemed as if things would quiet down for Greece, at least for a few months.
Unfortunately, a sticking point has already emerged, which was highlighted at yesterday's Eurogroup meeting. That sticking point is due to the very slow progress on meeting any elements of the February deal.
The institutions are now going to take a larger role in formulating the measures Greece must undertake. The first meeting between Greece and the institutions is due to take place in Brussels on Wednesday.
If these meetings can produce measures that are acceptable to both sides, that will be a first step.
In order for Greece to access further funding, it will have to take the second step and start to implement the agreed measures.
With time running out, both sides should be willing to expedite this process. Recent events have shown, however, that each step forward in the process happens at the last possible moment.