\u201cThere are red lines in the sand that will not be crossed,\u201d Greek Prime Minister Alexis Tsipras said just weeks ago as he began the long negotiations process with creditors.<\/p>\n
Some of these lines included no more pension cuts or value-added tax (VAT) increases<\/a>, and a debt restructuring deal that incorporates renewed economic assistance from Europe. Tsipras has been working to complete the previous government\u2019s austerity commitments, without any guarantee of a meaningful debt reprieve in the future.<\/p>\n Yet on Monday, he crossed his own previous red lines and offered a round of fresh austerity measures worth 7.9 billion euros ($8.9 billion)<\/a>\u00a0\u2014 the largest to date \u2014 which in turn prompted mass protests at home.<\/p>\n Crafted by the Greeks, an agreement seemed close at hand, but was nevertheless rejected by the International Monetary Fund and Greece’s euro partners at the European Commission and European Central Bank. The fiscal tightening that is currently being discussed is on the order of 2 to 3 percent of gross domestic product (GDP), comparable to that at the peak of the crisis in 2010.<\/p>\n