Eurozone expects Greece to reform despite election
Aug 22, 2015 - 12:00 am GMT+3
Aug 22, 2015 12:00 am
European policymakers said on Friday they expected Greece to press on with reforms agreed under its new bailout regardless of Prime Minister Alexis Tsipras' decision to resign and seek new elections. Some investors, however, were concerned by the uncertainty surrounding new elections. Tsipras resigned on Thursday, hoping to strengthen his hold on power in snap elections after seven months in office in which he fought Greece's creditors for a better bailout deal but had to cave in.
Greece received the first tranche of funds from the new 86-billion-euro ($97.01 billion) bailout on Thursday, after which Tsipras quit to seek re-election. "We respect Mr. Tsipras decision, but I can't help feeling it's a bit cynical timing to do it immediately after the first disbursement," Slovak Finance Minister Peter Kazimir tweeted. "Nevertheless, we have to believe that any Greek government to come will implement what was agreed," he added.
In Brussels, the European Commission said it was not worried about the implementation of the Greek bailout program, under which Athens must carry out economic reforms in return for aid. "Regardless of elections, reforms can be implemented," a Commission spokeswoman said. In Berlin, the government said it expected Athens to press ahead with its reform agenda and the finance ministry said aid disbursements would be delayed should the elections cause any delay in an examination of the program. In Paris, the foreign ministry said the French government was determined to work with the future Greek government on the implementation of the bailout program.
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Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University