Will Greece Reach a Deal?

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In The Media

Will Greece Reach a Deal?

Despite delays, the Greek rescue package will almost certainly be approved in the coming days. Whether or not the deal will prove to be sustainable is a much more difficult question.

By Uri Dadush

Published on Feb 14, 2012

Source: BBC Radio 5

Though talks between the European Union and Greece have hit a snag, the rescue package will almost certainly be approved in the coming days, Carnegie’s Uri Dadush told the BBC in an interview. The delay should not jeopardize the negotiations, but instead represents one more protest against the profoundly unpopular program being demanded by the EU and IMF.

Nevertheless, the problems will not end once the agreement is signed. "The Greek program is a disaster," said Dadush. Not only has Greek unemployment increased sharply, but budget deficit is also not being reduced at the pace that was expected and the exports are showing no signs of turning around. Dadush concluded that the “big concern is not whether the deal will be signed, but whether the deal is in fact sustainable” because the severe cuts will push the economy even deeper into recession.

About the Author

Uri Dadush

Former Senior Associate, International Economics Program

Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.

Recent Work

Commentary
The Labors of Tsipras
- Uri Dadush
In The Media
Greece, Complacency, and the Euro
- Uri Dadush

Economy Western Europe North America

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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