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.