Greece is the word...again.
Despite modest reforms, there are renewed
fears that Prime Minister Alexis Tsipras has
steered off course, and the nation could be
heading for another election.
In power for just over a year and desperate
to unlock the next 86 billion euro bailout
tranche, Tsipras is facing mounting pressure
on three fronts:
Creditors want Tsipras to slash pensions,
but Athens refuses. Greek pensions have been
cut 11 times since 2010. With nearly 25 percent
unemployment many Greek families find themselves
dependent on the monthly stipend.
Fresh polls suggest Tsipras's coalition- which
leads by a slim 3-seat majority - is quickly
losing ground to its conservative rival, New
Democracy. Leader Kyriakos Mitsotakis is emerging
as a strong political opponent.
Brussels is turning up the heat on Greece
over the migrant crisis.
The bank of Greece estimates the influx of
refugees may cost Athens 600 million euros
this year.
European leaders now warn Greece if it does
not fix its act within 3 months, it will face
suspension from the Schengen zone.
But Tsipras's lottery ticket may just rest
with the refugees. He hopes to persuade lenders
to ease the bailout conditions in exchange
for taking in more migrants.
Tsipras must act fast. In addition to escalating
tension at home, the IMF is now warning Greece
to come up with a credible plan, or risk bringing
Grexit back to the table.
