BSU Economist Says Greek Financial Crisis Could Affect Indiana

(MUNCIE) – Indiana could pay a price if the latest deal to end the Greek debt crisis isn‘t approved. The agreement with the rest of the European Union is more lenient than a deal rejected by referendum. It phases in austerity measures, and dangles the possibility of a 33-billion-dollar stimulus.

But Ball State‘s Michael Hicks isn‘t sure the Greek parliament will ratify it. He says there‘s resistance to the pension reforms European lenders are demanding.

Even if the deal is approved, Hicks warns it‘s only kicking the can down the road if Greece doesn‘t get serious about pension changes and a casual approach to tax collection.