The reforms launched by the Monti government to stimulate growth and employment "go in the right direction" but it is "essential that they are implemented". This was stated by the spokesman of the International Monetary Fund (IMF), Gerry Rice, in a press conference during which he touched on the various problems of the Eurozone.
Rice was a little less optimistic about the situation in Greece: the negotiations between Athens and the troika have made "good progress" but an agreement has yet to be found between Greece and its creditors on the issue of financing which must be consistent with debt sustainability. The cut of the latter, he added, must be "substantial".
As for the reform of the Greek country's labor market, the IMF spokesman highlighted that it cannot be imposed by the Fund unilaterally. The troika, made up of experts from the European Commission, the European Central Bank and the International Monetary Fund, it is putting the finishing touches to a final report that will determine whether the country has completed sufficient reforms to get the next tranche of bailout funds.
Meanwhile today a German government source anticipated that an agreement between the parties is closealthough some questions remain to be resolved. In Athens, however, sales are raining with the ASE index down by almost 5% due to the collapse of the banking sector due to fears that Greece will have to undergo a new restructuring of its debt.
"The Greek economy is collapsing too quickly to stabilize the debt in the future," Citi economists warned, recalling that the debt/GDP, as foreseen in the 2013 budget, should settle at 189,1% next year. "This is 40 percentage points higher than the March Troika report projections and will dramatically increase the pressure on European policymakers to consider another round of debt restructuring."
