Did Greece just blink?

By David Bosco

Reuters is reporting that the Greek government has sent a new proposal to the European Union and International Monetary Fund, and it appears to be quite accommodating:

On the issue of minimum wages, for example, Prime Minister Alexis Tsipras’s government climbed down from election pledges to raise the level immediately. Instead it said it would phase in collective bargaining with a view to raising minimum wages over time and that any changes would be agreed with partners.

Greece also said it would reform the public sector wage system in a way that would not reduce pay further but would ensure that the overall public wage bill does not rise.

Athens also committed to consolidating pension funds to achieve savings, and eliminate loopholes and incentives for early retirement – in an apparent effort to find a compromise between the government’s objective of avoiding any further pension cuts as previously demanded by EU and IMF inspectors.

Athens sent the six-page document to its European Union and International Monetary Fund creditors late on Monday. They must approve the plans to pave the way for the four month extension.

About David Bosco

Assistant Professor at American University's School of International Service. Contributing editor at Foreign Policy magazine. Author of Rough Justice: The International Criminal Court in a World of Power Politics and Five to Rule Them All: The UN Security Council and the Making of the Modern World
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