Despite the agreement, Eurogroup President Jeroen Dijsselbloem told CNBC during the G20 convention in Ankara, Turkey, on Saturday, that the new Greek government emerging from the September 20 elections will have to work to regain trust.
“In the past half year with the SYRIZA government, trust has completely gone away… So what we need now is a serious government that is implementing [reforms] seriously and will bring back trust, and I think that is the key issue…trust. Consumers’, producers’, investors’ trust, that is key,” he said.
The SYRIZA-ANEL coalition government that ruled Greece from January until August 2015 had an uneasy relationship with international creditors during negotiations over a new bailout deal. The tension climaxed when former Prime Minster Alexis Tsipras decided to call a referendum on a Europe-proposed bailout package, which Greeks turned down, as Tsipras had urged them to.
The aftermath included a long week of negotiations and uncertainty that concluded with the July 12 meeting in Brussels, which generated an agreement.
Disselbloem further noted that he believes Tsipras can implement the necessary reforms. The Eurogroup President denied that the measures included in the bailout are too harsh.
“I don’t think the conditionality is draconian, it really deals with the key problems in Greek governments, administration and the private sector, the economy. It needs to be done,” he said.