Reuters: Cash-strapped Athens has days, not weeks to reach deal

One EU official is quoted as saying “the Eurogroup wants to see the political cost being paid” by the Greek government

 

Reuters reported on Wednesday that “Greece has only days left to reach a cash-for-reforms deal with creditors”.

The news agency said an interim deal must then be followed in close step with talks to reach a … third bailout in June in order to avoid default.

The story quoted “euro zone officials”.

According to the Reuters dispatch, bylined by Jan Strupczewski, the radical leftist-governed country is “…Cut off from markets, Athens is fast running out of cash to pay salaries, service loans and redeem maturing debt. This poses a growing risk that it may default and perhaps have to leave the euro zone.”

“We are not talking about weeks any more, we are talking about days,” was the quote attributed on one European official.

The report also focused directly on the so-called “political cost” factor, as the leftist government has repeatedly said it won’t touch pension reform (cuts) or implement more labor market liberalization, such as allowing mass layoffs.

“I don’t see a possible conclusion if the Greeks don’t make a very significant move in one or two or three areas … It could be pensions, it could be the labour market but … they have to pay the political cost. The Eurogroup wants to see that political cost being paid.”