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Country Report Lithuania Product Image

Country Report Lithuania

  • ID: 2138679
  • February 2015
  • Region: Lithuania
  • 25 Pages
  • The Economist Intelligence Unit

On February 20th a tentative deal was reached between the new Greek government and the rest of the euro zone, subject to the latter's approval of a list of economic reforms to be submitted on February 23rd.

Even if approved, the agreement reached with Greece is only partial, and it leaves untouched the more fundamental problems with the underpinnings of the single currency. The deal is conditional on the Greek government obtaining approval from its creditors of a list of reforms that it commits to implementing. Even if this approval is secured, this will only buy Greece four months to allow for negotiations on a longer-term deal. With trust badly frayed, there is no guarantee that a long-term agreement will be possible, still less that its implementation will be politically sustainable in Greece. Following the formation of the Syriza-led coalition, our estimate of the risk of Greece leaving the euro zone in 2015 stood at 40%. We will be retaining that risk rating unless and until there is evidence of a shift in the Greek electorate's willingness to accept significantly higher levels of austerity and structural reform than were outlined in Syriza's election campaign.

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Country Report Lithuania

Long-term future of the euro is not assured
Event
Analysis
Impact on the forecast

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