Greek debt crisis may reappear with revived force unless the government, headed by its Prime Minister Alexis Tsipras, achieves an agreement with EU creditors in the next three weeks.
While the ruling two-party coalition celebrates two years in office, the prime minister faces the dilemma of implementing further austerity mechanisms or calling new elections in the country, since the application of severe cuts on social spending has dramatically decreased government’s support.
Moreover, further uncertainty has spread in Greece as the International Monetary Fund (IMF) has warned that national debt load could emerge as “explosive” by the year 2030. The IMF has concluded that additional pension cuts and tax increases will be fundamentally needed to achieve a primary budget surplus.
All in all, the country’s economic future appears to be tragic. It definitely seems that even if reforms are truly implemented and followed, Greek debt load will pose a serious problem for the following decades.