Greece Promises Credible Reforms.

Greek PM Alexis Tsipras promises credible reforms.
Greek PM Alexis Tsipras promises credible reforms.

Greek PM Alexis Tsipras promises credible reforms.

Greece on Wednesday promised it would start pension and tax reforms next week, as demanded by creditors, in return for a three year eurozone loan to drag it’s financial system back from the brink of collapse. “We propose to immediately implement a set of measures as early as the beginning of next week: including tax reform related measures; pension related measures” if the loan from the European Stability Mechanism(ESM) was forthcoming, the finance ministry said in a letter to the eurozone bailout fund. The letter, signed by new Finance Minister Euclid Tsakalotos, aimed to give Greece some breathing room to work out a new broader bailout deal with its eurozone creditors. It did not, however, disclose the size of the loan Greece was seeking. The ESM was set up as a lender of last resort for eurozone states to ensure the stability of the European single currency. The letter did not explicitly say that Greece would cut pension spending- and especially limit access to early retirement- or raise sales tax nationwide to 23 percent, as creditors want. Tsakalotos confirmed Prime Minister Alexis Tsipras’s promise  to present the Greek government’s reform proposals in detail to its eurozone partners on Thursday. “Greece is committed to honour it’s financial obligations to all its creditors in full and timely manner,” the finance minister wrote. Greece is teetering on the brink of financial collapse and a possible exit from the eurozone after the developments of the past two weeks.

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Chukwunonso Azinge is a Public health parasitologist whose variety of intrests ranges from international news reportage, writing articles on current world issues and of course football. Follow me on Twitter @azingelfc and on Facebook- Nonso 'King Kenny' Azinge.

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