The best for TSIPRAS is for Greece to go downhill from here
Control your expenses better than your competition. This is where you can always find the competitive advantage.
Apparently Tsipras is going to consolidate through more taxes instead of cutting expenses. He is going to kill their economy
More taxes is different than less expenses. It kills the economy in a very direct way. Tspiras is deliberately shooting his own foot in order to blame the TROIKA 1 year from now. He will try everything for his country to do bad.
The Greek proposals included higher taxes and welfare charges and steps to curtail early retirement. This is simply more deflationary pressure that will crack Greece apart. However, Prime Minister Alexis Tsipras is not prepared to cut nominal pension or wage cuts first sought by lenders, which would more likely than not spark revolution. Tsipras was elected in January on a promise to end austerity measures, also appeared to have avoided raising value added tax on electricity or loosening job protection laws. He is not fulfilling the will of the people making his election highly questionable. He refuses to look at the Greek economy or the Euro. All he is doing is trying to now support Brussels over his own country – a VERY BAD MOVE.
Greece must repay the IMF €1.6 billion euros by June 30 or be declared in default, potentially triggering a bank run and capital controls. However, the IMF can also agree to some nominal payment and any payment would technically not be a default. Nevertheless, looking forward, there is no solution to the Greek crisis by attempting to raise more taxes and suppress its economy for the benefit of Brussels and the IMF. Grexitis inevitable for turning the economy down from here will only make everything far worse.
Martin Amstrong
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