In my own layman and humble opinion the other 18 Euro members won’t allow Greece to exit and will extend the deadline and accommodate Greece yet again, but at some point Greece needs to illustrate a willingness to face up to it’s debt obligations and show that they are prepared to make some financial sacrifices.
Again, my take on it (in recent times anyway – it’s been a massive and growing problem since 2010) is that the new Prime Minister recently got himself elected to power on the promise that the people wouldn’t need to worry about his Government imposing financial restrictions on anyone in order to meet the demands of their creditors (The European Central Bank {ECB} and the International Monetary Fund {IMF} and the World Bank) and the people voted him into power on that promise. I was livid. He was an obvious liar and con man. He knows that Greece will need to tighten the purse strings otherwise their creditors will eventually take whatever action is necessary to recover their money owed to them. Greece is essentially bankrupt and cannot meet it’s ongoing financial obligations to it’s lenders or to it’s people. They can’t even afford to pay the Government pension to the elderly or pay their Government employees’ their wages and salaries without borrowing more each week, yet they are in the streets screaming and protesting that their creditors are blackmailing them by saying, “if you don’t start showing us that you are prepared to cut back on the size of the pension payments and increasing taxes, plus a few other things, then we will stop lending you more money”. This will of course eventually lead to Greece defaulting on their debt obligations, yet they continue to live on with their head in the sand.
Again, I think that this will go to the wire again but the other Euro leaders will agree to another bailout, and I expect that this next bailout will contain undertakings by the Greek Government that there will be austerity measures put in place, however this will be seen by the Greek people as their lying Prime Minister breaking his election promises. I actually hope this happens and that the people drag him around the streets by his knackers.
The 10 point article below by Mohamed El-Erian is worth a read.
Greece is in immediate danger today, and so is the rest of the global economy – Article by Mohamed El-Erian
https://www.linkedin.com/pulse/10-things-you-should-know-crisis-greece-mohamed-el-erian