Greece’s government and its international creditors were in talks over a third bailout agreement as Socialist Worker went to press.
Several European Union bodies and the International Monetary Fund are set to lend Greece money so that it can keep paying it back to them.
The Greek parliament has already agreed to a raft of cuts, privatisations and austerity reforms to get agreement for the bailout. But the institutions are demanding more before they seal the deal.
Parliament could be recalled as early as this week to agree to new measures. Greece is due another payment to the European Central Bank it can’t meet without the bailout.
The bailout is pitched as a way of helping Greece. But the debts were run up by bankers—and austerity is causing immense hardship.
In their debates with each other the creditors have been more honest about their motives.
Senior German Tory Ralph Brinkhaus said, “The more money is handed out in one stroke, the less leverage one has to stop payments if the reform process in Greece does not pan out as planned.”