Greek gloom as economy stalls amid latest bout of EU wrangling

In exchange, the once fiercely anti-austerity Tsipras has signed up to further reforms worth €3.6bn, the equivalent of 2% of GDP, to be put into effect once the current programme ends next year. "It is in the nature of every agreement for there to be compromises," said Greek finance minister Euclid Tsakalotos, who faces the thankless task of having to sell the prospect of more pension cuts and tax rises to sceptical leftists in the ruling Syriza party when it convenes on Sunday. "There are things that will upset ... the Greek people."''

...

But the breakthrough falls far short of the all-inclusive package the government was hoping for. Once again, promises of reducing the country's staggering debt pile -- at 180% of GDP, the biggest impediment to real economic recovery -- will have to wait. The International Monetary Fund, which has steadfastly refused to finance the latest bailout until meaningful debt forgiveness is assured, repeated that without "a credible strategy" it would be unable to even present the programme to its own board.

...

"The EU is buying time, governments are buying time, the Greek political system is buying time," said Giorgos Kyrtsos, a Greek MEP with the conservative New Democracy party, looking out at the grey skies above Brussels.

"There are two Grexit scenarios. One made in Greece, the result of the inability to restart the economy. And one made in the eurozone because of political developments in France or Italy. In my view, the big danger is the permanent political and economic crisis in Italy. You can't have Greece trapped in the eurozone if Italy leaves."