Greece Economy 2015 - The Greek economy continues to face challenges as it re-stabilize its financial systems following the crisis and nation's stock market shutdown. Though Greece and its lenders were optimistic on Tuesday that they could broker a deal amid the multibillion-euro bailout, bank shares have dropped again.
The said bailout, which is worth up to €86 billion ($94.5 billion) must be paid off by Aug. 20. According to Reuters, Greek Finance Minister Euclid Tsakalotos said the negotiations were going better than expected. While Commission spokeswoman Mina Andreeva said they were encouraged by the progress and were moving in the right direction as intense work is underway.
Greece's multibillion bailout will be the indebted nation's third bailout since 2010. It is designed to fend off bankruptcy and keep the country from falling out of the euro zone.
Greece has also faced tortuous negotiations in the past, wiped out in details of reforms ranging from pensions to shop opening hours. And this year, the nation was riddled with angry outbursts about responsibility, sovereignty and even blackmail.
Amid the uncertainty in their economy, the prospect of an early election in Greece intensified while the market continues to take a plunge. Irish Independent noted that the left-wing government is depending on the opposition party support for approval in a parliament of new austerity measures demanded by bailout lenders, after a revolt by almost one-fourth of its own lawmakers.
Greek government spokeswoman Olga Gerovasili has stated the government would not form a national unity government and described early elections as a possibility.
"A solution will be found, since the country needs a strong government," Gerovasili said. "(Early) elections are likely but that doesn't mean we will be dealing today with when they will take place."
Greece's economy is still rattling from the effect of the imposed limitations on money withdrawals and transfers to avoid a collapse of the banking sector. But the insecurity over Greece's negotiations for a new bailout and over the stability of the government have amplified concerns.
Meanwhile, Greek banking shares dropped for the second day in a row on Tuesday, CBC News reported. The plunged dragged the main Athens index down in a graphic illustration of the country's financial and economic woes.
As Greece's economy remains uncertain, European markets were unaffected by the Greek market nosedive. And as per Italian finance minister Pier Carlo Padoan described the European markets' resiliency as a "normal market behavior in exceptional circumstances".
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