Display
- The lenders have brought an extension of the ongoing aid program to November into play. But Athens refuses.
- representatives from Ireland and Portugal criticized the Greek Premier Tsipras hard at the EU summit, as these countries had to accept even harsh austerity measures in the past.
Four days before the expiry of the Greek rescue package has rejected a final offer, the lender, the government in Athens. This had brought a further extension of the rescue program to November into play. The Greek government could expect in agreeing to the conditions with grants totaling EUR 15.5 billion, says the range of institutions, ie European Commission, European Central Bank (ECB) and International Monetary Fund (IMF). Athens would have to apply for the extension of the program until Saturday morning. On Friday night, however, came the rejection of Greece. A representative of the Government said that it had “neither the mandate nor the moral right of the people to agree on a new aid program.” Prime Minister Alexis Tsipras called for the evening a special meeting of his cabinet a.
Immediately after the announcement of the cancellation was reported from the environment by EU Council President Donald Tusk, the planned Saturday meeting of euro zone finance ministers find yet as planned instead of. The Greek Finance Minister Yanis Varoufakis will participate. If there is no convergence, the ministers would discuss “Plan B”. From the executive office of the EU Commission was reported, it was “not very optimistic”.
Play
(Video: Reuters Photo: AFP)
Angela Merkel for Greece deal “Exceptionally generous” For video products
“Plan B” includes measures that the Greek banks insulated from the banking system of the euro area and the remaining countries of possible unrest in the markets to be protected. In the event that not still some Ministers at the last minute, the lenders want to prepare the closure of the Greek banks. On the edge of the previously ended at noon on Friday the EU summit in Brussels had been discussed whether the banks in Greece at all may reopen on Monday.
German Chancellor Angela Merkel had on the EU summit in Brussels supply of Athens called “extraordinarily generous” and Tsipras “encouraged” to accept it. Federal Finance Minister Wolfgang Schäuble gave himself restrained. “It is 50 to 50,” he said at a conference in Frankfurt. Schäuble also penetrates that all grants, other than proposed by the institutions, are only paid if Athens has implemented promised reforms.
Alexis Tsipras to Donald Tusk
“This is not a game. Do not underestimate what can make a nation, if it feels humiliated.”
View
Earlier, in a long summit Eight were many Greek ideas failed. “The isolation of Tsipras at the summit” headlined the conservative newspaper Kathimerini on Friday. Left saw blades Athens Premier more than ever in the narrowness. Harsh criticism was Tsipras at the summit of the Heads of Government of Ireland and Portugal to hear that a few years ago had their citizens also impose tough austerity measures, without there being Summit debates, as the Irish Prime Minister Enda Kenny remarked. “Where are your structural reforms,” said Kenny
Greece Bitter hour for Tsipras
Emotional outbursts dominate the meeting of Heads of State and Government. In the center of the criticism is Greece’s Prime Minister Tsipras – who speaks of a humiliation.
Also, on an emotional clash of Tsipras with EU Council President Donald Tusk was reported: As Tusk said in English: “The game is over” (the game is over), the Greek Prime Minister had gone out of his skin. “This is not a game,” he defended himself, stood behind him “1.5 million unemployed, three million poor and thousands of families without income, living on the pension of her grandparents.” One should not underestimate, to what a “humiliated people” was capable Tsipras declared passionately. Practically the only was Cyprus President Nikos Anastasiadis Greek Prime Minister aside. His country is going through an austerity and reform program, but he supported the request Tsipras’ after debates on debt relief. But Tsipras had proposed a special summit, for which he could win but not a majority.
Your Forum What can help Greece out of the crisis really?
There remain only a few days to find a solution to the debt crisis. On June 30, the current aid program expires – the future is uncertain. What reforms do you think is useful and especially realistic?
Tsipras has made it clear that “Plan B” is written. The finance ministers will on Saturday also advise about how the rest of the euro area countries can be protected from the consequences of a Greek sovereign default. A final compromise offer of Athens rejected the institutions from Friday. Therein the Tsipras government had accepted the requested increase in VAT for restaurants to 23 percent, is committed to extensive privatization and also low additional savings in the pension system. Is there an agreement, is expected to advise on Sunday about the Greek Parliament.
In Athens the party left to go, the concessions of Tsipras too far. The website of the left platform of Syriza rails against the “ultimatums” of creditors and their “neo-imperialist tutelage”. In Parliament Tsipras is likely to depend on voices of opposition in the face of resistance from within the company, he also would get most likely. Labour Minister Panos Skourletis had on Friday in order to pay all pensions end of the month, can borrow 150 million euros from an insurance reserve of the bank employees. Greek media spoke of a “forced loan”.
before Tuesday should the Bundestag vote on the extension. He must agree in addition to some other national parliaments. In order to secure the Greek debt sustainability in the long term, the donors had recommended a third utility. “A new three-year program” with additional funding is necessary. . The institutions came to the conclusion that a requested by the Greek government debt cut is not necessary, although it is clear that the objectives previously adopted can not be achieved
In the paper the donors states: ” It is clear that it made impossible the political uncertainties of the last few months to achieve the 2012 targets issued under any scenario. ” At that time, the financiers had assumed that Greece may 2020 on the aid in terms of economic performance, a debt ratio of 124 percent and reached 2022 by 110 percent. At best, the financiers are now expecting 2020 with 137.5 and two years later, with 124 percent. In a second scenario, which assumes the partial implementation, is the debt ratio for the year 146.5 and 135 percent. In the third and worst, they are in 2020 at 149.5 and 2022 at 142.2 percent. In the first two scenarios, according to the paper, no major adjustments to the debt service of Greece are necessary. In the worst case, although changes in the methods of payment would be made, but that “does not include nominal haircut or budgetary cost of the donors”.
The euro zone finance ministers had Greece in 2012 pledged by 2016 a “wider BROAD debt sustainability concept “to consider. In the agreement of the Euro Group of 27 November 2012, when the current, still to 30 June current rescue program was approved, it is, such an approach would result in the medium term lower debt levels to less funding injections by 2020 and “the facilitation of funding situation. ” That sounds verschwurbelt, means nothing other than that the rescue program not only provides for the obligation Athens to reform, and to save – but also the concession of Euro-partners, to facilitate Greece after 2016, the debt service
.
No comments:
Post a Comment