Greece is at risk of reliving the days of 2015, when stalled negotiations led to financial instability and collapse of the banking system. At least this is Bloomberg’s prediction, in an analysis about the recent state of talks between the Greek government and the country’s lenders.
Another deadline passed last week, as the two sides have yet to reach an agreement after expressing irreconcilable differences on issues such as reforms, pension cuts, labour market regulation, and energy.
According to the global financial news agency, this stalling marks another lost opportunity for Greece to get out of the crisis; prolonged negotiations have caused financial and political uncertainty, which has taken a toll on the economy, increasing the need for bailout.
If no agreement is reached soon, then the country might not be able to meet its July deadline to pay €7 billion in debt bonds.
“The Greek recovery is once more significantly delayed by politics,” Nicholas Economides, a professor of economics at New York University’s Stern School of Business, told Bloomberg.
“Tsipras will blink at some point in time, the question is when.”
