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Published: Sep 09 , 2016
Author: Yannis Dimarakis

The Hellenic government has been struggling over the last 6 months to finalize an austerity package demanded by its 3 creditors (i.e. the IMF, the ECB and the European Commission – know as the “troika”). The package’s aim is to ensure that the deficit will be checked and that public spending will be reduced to sustainable levels. These measures are never popular as they usually entail steep salary and pension cuts, reductions in social benefits, decrease in the quality of health and education etc. None the less, this package, worth 11.5 bn € (a very heavy figure given the scale of the Hellenic economy), was a sine qua non for the release by the creditors of the next installment of funds to the government in Athens. So the pressure was on to wrap this up as soon as possible...

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