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.
World leaders have gathered at the annual G20 summit which is being held in China for the first time. This year’s meeting is primarily dedicated to build an innovative global economy which must include emerging economies in order to create a “healthy and coherent” world system.
Therefore, the event’s agenda is essentially being ruled by economic issues. China’s major aim is to promote strategies which will improve global economic governance and strengthen financial, energy and tax cooperation.
However, economic and financial policy is not the only issue that is being discussed these days. World leaders have the opportunity to socialize and address crucial issues on the global agenda, from the current geopolitical crisis to the issue of climate change. In fact, UK Brexit plan, Syrian war, the armed conflict in eastern Ukraine and the need to definitely eliminate ISIS are some of the matters for which world leaders are seeking effective solutions.
Finally, Chinese President Xi Jinping sees this summit as the perfect opportunity to show the world that China is a powerful nation and thus able to take a guiding role in the world economy.