On Friday, experts from the ‘troika’ – made up of the European Central Bank, the IMF and the European Commission – abruptly broke off talks and made a hasty departure from Athens. The troika’s walkout came after a strong disagreement between the troika and the Greek government over how to cover a massive blowout in Greece’s budget deficit this year, and amidst growing frustration over Greece’s reluctance to implement major structural reforms, and improve its tax collection system. Unless some compromise can be reached when talks resume again next week, Greece may be denied its next €8 billion ($US11.3 billion) payment out of the country’s €110 billion bailout agreed last year. As a result, Greece could be forced to default on its debts – with potentially catastrophic effects for global financial markets. Photo: Reuters
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