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Greece reportedly reaches an agreement with international lenders regarding public sector...

Greece reportedly reaches an agreement with international lenders regarding public sector reform. The compromise, which involves a "labor mobility scheme" covering 12.5K civil servants, will allow the troika to finish its review of the country's adjustment program. Additionally, Kathimerini says the two sides have reached an agreement regarding a €2B funding gap. Eurozone finance ministers will decide Monday whether to sign off on an €8.1B tranche of aid.
Comments (8)
  • Grant Dossetto
    , contributor
    Comments (139) | Send Message
     
    *Sigh* Greece continues to worsen. Does any of this crap actually mean anything? Just let the country default.
    6 Jul 2013, 12:26 PM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    Greece has sharply cut government spending as a percentage of GDP, liberalized the professions, reduced the power of the labor unions, and gone from a big account deficit to a substantial account surplus.

     

    The austerity imposed has caused a severe recession, but any less austerity and the country would have defaulted at a time when it was running a large account deficit. A small dose of austerity would have caused bond buying to dry up.
    7 Jul 2013, 11:02 AM Reply Like
  • Grant Dossetto
    , contributor
    Comments (139) | Send Message
     
    Greece continues to run government deficits while GDP contracts, both in manufacturing and services. Shipping is still contracting with oversupply driving the baltic dry index to historically depressed levels. Unemployment is worsening, hardest hit are 20 somethings who are unable to start careers let alone begin families.

     

    Greece is less likely to get private financing today then when the crisis began to flare in '09. No amount of bailouts will fix that, they've tried for four years.
    7 Jul 2013, 11:29 AM Reply Like
  • foodforthought
    , contributor
    Comments (217) | Send Message
     
    ...not until Merkel gets re-elected!
    6 Jul 2013, 12:46 PM Reply Like
  • jazzfan1
    , contributor
    Comments (84) | Send Message
     
    You nailed it!
    7 Jul 2013, 06:57 AM Reply Like
  • tripleblack
    , contributor
    Comments (13440) | Send Message
     
    German elections in September. I expect Merkel to lose. Left/green coalition will form new govt.

     

    Ironically, effect of this on issues like Greece could be minor, though. New German govt. is likely to continue this particular path.
    7 Jul 2013, 10:56 PM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    There. Greece is all fixed now. Problem solved!
    6 Jul 2013, 03:02 PM Reply Like
  • designshoe
    , contributor
    Comments (791) | Send Message
     
    yep, kick the can down the road, but it's a very long road.
    Long GREK
    7 Jul 2013, 05:31 AM Reply Like
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