showdown, the second: In Brussels, the euro zone finance ministers renegotiate Greece, with little opportunity for a compromise. Much depends on the choice of words.
Alexis Tsipras | © Orestis Panagiotou / epa / dpa
No, you can not say that the ratio of the euro group chief Jeroen Dijsselbloem and is the new Greek Finance Minister Yanis Varoufakis very cordial. During their first meeting in Athens Varoufakis unceremoniously announced the end of the troika of the European Commission, the European Central Bank and International Monetary Fund. A visibly speechless Dijsselbloem was so taken aback that he almost forgot to shake Varoufakis on leaving the hand.
And then the sensation last week Wednesday in Brussels. After hours of talks Varoufakis conceded in the last second a tedious ausverhandelte Policy. Dijsselbloem had no choice but to proclaim as tight-lipped, that we have not yet agreed.
On Monday 15 clock the two men meet again. On the regular euro group meeting will be discussed according to the official agenda even over Portugal and Cyprus. But in fact it is the (second) Showdown for the Greek bailout. The Slovak Finance Minister Peter Kažimír was quoted last week on Twitter, it could even be a “ bloody monday “.
The entire Friday and Saturday, representatives of the Greek government and EU Commission, ECB and IMF sat together in Brussels to go through the troika reform met: What requirements the Greeks have problems, what conditions will the lender necessarily know more fulfilled? What additional expenditures wants Greece – about assistance programs, especially for vulnerable households? What would that mean for the financial backers?
The red lines on both sides is hardly penetrated slightly outwards, all participants stressed that there had been only “technical discussions”. Now on Monday stands on the political negotiations. According to Financial Times the Tsipras government opposed, however, to far more Troika targets than previously thought. Varoufakis had said in recent days over and over again, Greece would implement some 70 percent of requirements specifications without the lender. Among them is the fight against corruption and tax evasion. With 30 percent but you did not agree. Now, however, the 70-30 rule of thumb apparently no longer applies. However, this may simply be part of the Greek negotiations poker.
The Government of Alexis Tsipras is under enormous pressure. On Sunday evening, again demonstrated thousands of supporters on the streets of Athens against the austerity plan – and thus gave Finance Varoufakis a clear message on the way: Think of your voters, the election promise fulfilled! In Brussels Tsipras had said last Thursday that both the troika and the memorandum, that the reform program would no longer apply. Requirements such as a budget surplus net of interest payments of 4.5 percent of economic output in 2016 he considers illusory. The privatization conditions will not continue to implement Greece and instead only awarded concessions. On weekends, a member of the government has stressed that as the sale of 14 Greek airports to the German group Fraport is far from complete.
inland the next six months, the government intends to develop a new program that is designed to relieve especially the social distress. SYRIZA had presented a four-pronged program last September, which will cost about twelve billion euros and relieve especially the social impact of the crisis. Should help the industry organization OECD countries.
Until the new package completed, Greece desperately needs money to operate the current debt. In addition, more and more Greeks withdraw their money for fear of a possible exit from the euro and hoard – according to Reuters information, it will be nearly 300 million euros a day. The banks are therefore dependent on short-term emergency aid the Bank of Greece. On Wednesday, the Executive Board of the ECB in session. You could approve new bailouts – or not. Also, the agreement increases the pressure on Greece. The euro countries, led by Germany, insist on it so far, to grant more loans only if the Greek government’s commitment to structural reforms.
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