Euclid Tsakalotos

Greece unveils its painful 2016 draft budget on Monday in the hope of appeasing its international creditors (EC, ECB, IMF, ESM) and meetings its pledges for the third bailout agreement. The goal of the budget is to navigate Greece on the choppy seas towards growth in 2017.

Greek Finance Minister Euclid Tsakalotos predicted the Greek economy would return to economic growth in the second quarter of 2016 in an interview to Financial Times. Tsakalotos clarified that this would be possible only if the first review of the Greek bailout plan by the EU institutions was positive.

The third bailout agreement for Greece sees the special VAT rate on Aegean islands to gradually phase out as of October 1. It will initially be abolished on the islands of Paros, Mykonos, Santorini, Naxos, Syros, Tinos and Milos.

Greek Finance Minister Euclid Tsakalotos said on Wednesday that the country’s top short-term priorities are shoring up capital levels in the country’s banks and kicking off discussions on debt relief with Greece’s creditors.

There was enthusiasm at SYRIZA’s headquarters on Koumoundourou street from the first exit polls that put the party ahead of its main rival, the conservative New Democracy party. As the night progressed with votes tallied in the party’s favor, reserved joy gave way to smiles and cheers… and the flow of whiskey.

No sooner did the polls close that the first projected results showed that the bet had paid off for SYRIZA. If the polls are right, SYRIZA is on track to win 30-34% of the votes, winning an overall majority. A combined poll from five television station said that SYRIZA would get around 34% of the vote and New Democracy would be on a range of 28.5 to 32.4%.

The new interim Greek Finance Minister George Chouliarakis said the country has entered into a recessionary phase, during the ceremony of the handing over of the Ministry by outgoing Minister Euclid Tsakalotos, Friday.

Greek PM Alexis Tsipras is expected to make an announcement on Thursday on whether he’ll call snap elections immediately, given that his government appears to lack a parliament majority at present. In the afternoon, the Greek PM met with his closest associates, and according to sources, he will announce elections, possibly for Sept. 13 or 20.

Speaking before parliament, Greek Finance Minister Euclid Tsakalotos was cryptic when referring to the possibility of early elections. He stressed that Eurgroup guarantees all deposits, while adding that it was not the right time to go into details about who was to blame for the imposition of capital controls.

 The European Stability Mechanism’s (ESM) board of governors on Wednesday evening approved Greece’s latest bailout plan, the third since 2010.