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Fears grow Greek debt crisis could again RIP Europe apart

GREECE’S debt crisis could flare up again this summer as its government drags it feet on implementing unpopular economic reforms demanded by its creditors to unlock further cash.

man with greek flag
GETTY•EXPRESS   The Greece debt crisis could once again threaten the eurozone


Last year the debt-ridden country brought the union to the brink and almost left the bloc over brutal austerity measures dictated by the so-called troika of the European Commission (EC), the International Monetary Fund (IMF) and the European Central Bank (ECB).

At the eleventh hour the Greek government backed down and agreed to reforms in exchange for more cash that stopped the country from going bankrupt.

But policymakers have been slow to put the measures in place.

At the same time, the Greek government is still arguing for debt relief, which is also thought to be a favoured move by the IMF.

However, the EC led by Germany is thought to be completely against writing off any of the money owed by the beleaguered country, out of fear Italy, Spain and Portugal could demand similar treatment.

greek prime minister alexis tsipras

GETTY     Greek Prime Minister Alexis Tsipras is trying to secure debt relief


Greece has been crippled by its huge debts and is also in the middle of the migrant crisis, which have made recent economic recovery a huge challenge.

Prime minster Alexis Tsipras upped the stakes by recently signing an agreement with Portugal that stated that the two countries were against eurozone austerity policies.

It comes as the Greek leader faces growing discontent at home with former ally Zoe Constantopoulous this week starting a new political party that is against European Union policies.

The ex-parliamentary speaker is now leader of Sailing for Freedom, which is fighting for Greek debt forgiveness as well as war reparations from Germany.

In the meantime, talks between Greek ministers and inspectors of the official lenders are set to resume again in Athens on Tuesday over the reforms.

But time is again of the essence with vital repayments set to be made this summer that Greece can’t afford without further aid.

http://www.express.co.uk/finance/city/662828/Fears-grow-Greek-debt-crisis-could-again-RIP-Europe-apart

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