The agreement reached at the latest Eurogroup meeting has bought the Greek government time to focus on the recovery of the economy and readjust its policy targets for the foreseeable future.
The conclusion of the second review restores confidence in the government and allows it to use time at least until the third review begins in October to shift the political agenda in its favor.
According to sources, Prime Minister Alexis Tsipras is in search of a new political narrative. The key message put forth by Tsipras is that Greece is one year away from the conclusion of the bailout program and regaining access to international markets. This message was amplified by ESM chief Klaus Regling on Monday who said Greece could borrow from debt markets again this year or in 2018.
The government also emphasizes the planned establishment of a Development Bank, which is expected to be launched in the autumn. Additionally, Athens is sending a strong message of stability to foreign investors, which is hoped will result to the creation of new jobs and further reduce unemployment.
Tsipras has sent a “strict” message to his ministers, noting that now that the review of the bailout program is over, emphasis must be given to improving the everyday lives of ordinary Greeks, promoting reforms and facilitating investments.
The round of talks with political party leaders Tsipras launched on Monday will help indicate that the country has returned to financial and political normality under the leadership of the Syriza-ANEL coalition.
Sources close to the government suggest that Alexis Tsipras is also planning ahead. The PM will be a speaking at an event organized by the European Group of Socialists & Democrats, with a view to establish alliances ahead of the third review and debt relief talks set to begin in 2018.
Finally, reports in the Greek press suggest that the premier may also reshuffle his cabinet in an additional move to signify the new era of stability being ushered in and boost the implementation of the government’s agenda. However, government sources insist a reshuffle is not on the cards./IBNA