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Greece Misses 1st Commitment: Delays Reform List Delivery Until Tuesday

Well that didn't take long...

  • *GREECE TO SUBMIT LIST OF REFORM COMMITMENTS TO EU TOMORROW: OFFICIAL

So we are less than 3 days into the 'new deal' and Greece has missed its first deadline. We can't help but wonder if the initial draft, just as we warned, was thrown up all over by the Germans.

Gov official says Greek list of reform proposals to be sent early Tue (or late Mon). Being discussed w creditors;drafts have been exchanged.

— NikiKitsantonis (@NikiKitsantonis)

As George Saravelos, strategist at Deutsche Bank notes:

The Greek government’s capacity to agree and deliver on the conditionality of the current program remains the key source of uncertainty under the current agreement. Most immediately, the government will have to navigate the fallout from today’s agreement, as well as the ‘reform list’ that will need to be submitted on Monday.

 

On a more forward-looking basis, it is likely that the government will have to agree to fresh revenue generating measures: even with a downward adjustment to this year’s fiscal targets, budget execution for this year is meaningfully off-track. The road ahead remains long, and it remains unclear how the current government can navigate between the commitments it has made to Europe with competing domestic political demands – both internally within the Syriza party as well as with the electorate.

 

A small step has materialized, but the hard work is about to begin.