The Eu And The European Crisis

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Positions and Interests
Greece knew they were in trouble and they had to receive money from an outside source to keep going as a country and also be able to pay back their creditors. However, Greece was unsure of how to. Greece was interested in paying their creditors back but were not interested in all of the austerity cuts the EU wanted Greece to implement because these cuts would upset some of Greece’s citizens. The EU’s top priority from these negotiations was to make sure Greece would reduce the amount of debt they would be taking on each year. The way the EU was going to make this happen was by making sure Greece implemented austerity cuts. The IMF was not really interested in making Greece implement austerity cuts. (IMF and EU
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Also with the lower debt, this would allow Greece to get closer in meeting the qualifications IMF has for loaning money to countries.(IMF is blackmailing the EU article) IMF believes, if the debt is not reduced, Greece will default once again on their loans. However, the EU doesn’t want to write off any of Greece’s debt because they want to be paid back on their loans. The EU’s position is, the tax payers of the EU has loaned the Greek’s this money and are expected to receive their money back. (IMF and EU Loggerheads article) One way the IMF and the EU could bridge this difference is the EU writing part of Greece’s debt off and the IMF could write a portion of Greece’s debt off.
Therefore, the IMF and EU agreed to lend Greece additional aid on the condition that Greece accepted the austerity measures. Regardless of the referendum vote, Prime Minister Tsipras chose to go against the results and accept the terms of the bailout. The reason that he did this is because he was worried about the future of Greece if they were to actually leave the EU, and did not want to take that risk. Even if Greece left the EU, it would not change the amount of debt left outstanding. However, by not listening to what his fellow Greeks requested him to do, and also putting the EU bailout offer to a referendum vote, Prime Minister Tsipras broke a lot of trust with his fellow Greeks, EU countries, and the IMF. One country
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