Greece has submitted its latest austerity plan to eurozone leaders, but are the measures believable when the country voted against austerity last weekend? As time runs out, Ciara Lee asks whether it will be enough to clinch a deal.
Compromises on both sides - but will it be enough? Greeks awoke on Friday to fresh hopes their government may finally be able to secure a deal with international creditors. Germany has made a small concession acknowledging Greece will need some restucturing to its debts. And Prime Minister Alexis Tsipras has offered up a new round of concessions to try to save the country from bankruptcy. These include plans for more tax hikes and pension reforms. As well as: Phasing out tax breaks for the country's islands, tax hikes on shipping companies, defence spending cuts and privatising state assets. But will it be enough to convince Greece's lenders when the latest bailout plan accepts most of what the July 5 referendum rejected. 60 percent of voters opposed more austerity in a vote held over the bailout deal. Peter Dixon is from Commerzbank. (SOUNBITE) PETER DIXON, GLOBAL FINANCIAL ECONOMIST AT COMMERZBANK, SAYING: "It looks pretty poor on the surface that the government is basically caving in to the demands which were made of it a week ago and which were decisively rejected by the electorate. Frankly it has no choice. So I think Greece will have to swallow this bitter medicine and move on." The country has had two bailouts worth 240 billion euros from the euro zone and the IMF since 2010. But its economy has shrunk by a quarter and the government has struggled to implement reforms conditional to the bailouts. It's pushed relations between Greece and its creditors to an all time low. (SOUNBITE) PETER DIXON, GLOBAL FINANCIAL ECONOMIST AT COMMERZBANK, SAYING: "I think trust has been broken quite extensively. I think they will have to cobble together a deal for Greece. I think all sides will have to lose a little bit of face. But perhaps in the long run it is the best thing for the preservation of the euro zone." Senior German conservatives expressed doubts on Friday about the seriousness of the new proposals, and whether Greece really has the will to implement tougher reforms. French President Francois Hollande however has described the proposals as a step in the right direction. (SOUNDBITE) (French) FRENCH PRESIDENT FRANCOIS HOLLANDE SAYING: "The Greeks have just shown their determination to remain in the euro zone, since the programme they are presenting is serious and credible and because they will submit it to the (Greek) parliament which will show strength, commitment and indeed courage." European markets seemed to agree. Stocks surged in early trade with the FTSE Eurofirst300 up 1.5 percent. And the Euro Stoxx 50 rising over 2 percent.