Greece’s reform plan includes measures on tax evasion, smuggling, reforming the public sector, handling Greece’s humanitarian crisis and bad debts. The Eurozone’s finance ministers agreed with Prime Minister Tsipras’s reform proposals and the bailout will be disbursed after creditors approve Greece’s new economic plan. The EU and Greece are finalizing details, including the organization of parliamentary elections in several Eurozone countries in the next few days.

Athens’ concession

In the next four months, the Greek government will have to create a detailed roadmap to realizing its commitments which will be monitored by international institutions. Though the agreement fell short of what each side expected, it has defused tensions between Greece and the EU. There was no alternative. Greece needs the bailout to avoid chaos within the EU and a domino effect on EU aid programs.

This agreement is not really favorable for Greece, where Tsipras’ Syriza party had taken a tough stance against austerity programs. In his first speech after European creditors agreed to extend the bailout for 4 more months, Tsipras said the agreement will help end austerity measures but Greece will have to pay it back with concessions.

Challenges for Greece

Prime Minister Tsipras promised to do his utmost to work out a solution of mutual benefit based on the principle of mutual respect and abiding by EU regulations and voters’ aspirations. But analysts say this is an empty promise. Tsipras has failed to keep the promises he made during his campaign, at least for the next 4 months. The Greek government has had to make concessions that depart from its plan to eliminate the bailout program, reduce austerity measures, and end cooperation with three creditors: the European Commission, the European Central Bank, and the International Monetary Fund. These concessions have drawn strong criticism from the Greek public. The opposition party said the Prime Minister has broken his promise to voters and the agreement is a step backward in the democracy reform process. Tsipras may have to deal with anti-government protests because some are calling for demonstrations against the reform plan. According to demonstration organizers, the pubic is disappointed with the government and wants the government to raise the minimum wage, and improve the labor market, health care, education, and public services.

During the next 4 months of the bailout extension, Greece and its creditors will have some time to map out an appropriate reform roadmap. The major challenge of the Greek government is to secure aid packages while carrying out austerity reforms without losing public trust.