Greece strikes agreement with Troika of lenders

THE GREEK government has reached a preliminary agreement with its three international lenders, committing to tax reform and spending control in an attempt to finally hit fiscal targets.

The European Commission, which makes up the Troika with the International Monetary Fund and European Central Bank (ECB), announced the deal.

The government will commit to address overspending on health, and make changes to income and property taxation. The European Commission’s statement indicated that the troika expect Greece to return to growth in 2014.

Greece’s consumer price inflation for June was also announced yesterday, signalling a 0.4 per cent drop in prices in comparison to twelve months earlier, which may make it increasingly difficult for the government to make debt repayments.

The ECB’s president, Mario Draghi, was declared to be the most influential person in European capital markets by Financial News. The central banker is the only person to have topped the list three times in a row.