The clock is ticking and Greece is getting desperate for a new flow of cash to meet current spending and pay off some its national debts by the February 28 deadline. But it continues to play tough in negotiations with the EU, refusing to accept further austerity measures after an election endorsing a new economic policy. Can the EU save face in the stand-off?

<i>Greece has to find new cash by the end of February to finance its current spending and to reimburse a fraction of its public debt. The European Union is willing to help in order to justify its role and diffuse tensions, but it must save face as Greece has failed to comply with the past agreements. The new Greek governmen...

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Professor Enrico Colombatto
The forthcoming Greek recipe will offer a solution to unsustainable public indebtedness. Yet, relief will be only temporary, and of little help for growth. By increasing the reward to populism, the Greek recipe could delay reforms and create conditions for renewed budgetary weaknesses with larger deficits
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