Inevitable ultimatum to Greece on reform

THE kindness of strangers took on a new, less comforting meaning for Greece yesterday when eurozone finance ministers warned that it will not get any more financial support until a complete economic reform plan is agreed.

It was inevitable that this no-foal-no-fee moment would arrive as long-promised reforms have yet to materialise. That breach of trust is exacerbated as ECB and IMF officers no longer have a role in validating claims about the Greek economy. This means a novice administration short on credibility is the only source of economic data from the country as it lurches towards bankruptcy. Hardly an ideal position. Bankruptcy is an appalling prospect for the people of Greece but it has the potential to destablise the eurozone and that terrible threat is at the root of yesterday’s hardened declaration — as is the probability that EU finance ministers have run out of patience with a prevaricating administration.

Earlier this week German Chancellor Angela Merkel said “everything must be undertaken to prevent” Athens running out of cash. But yesterday finance ministers were less affable and insisted on pension and labour market reforms. This was inevitable as there has been little or no progress on reform since Syriza was elected on a promise to reverse austerity and renegotiate Greece’s €240bn bailout package. The have-it-all election campaign promises have run into the immovable object commonly known as reality.