Friday, June 5, 2015

Debt Crisis: Greece Tsipras sees on the home straight – ZEIT ONLINE

According to Greek Prime Minister is close to a solution in the debt dispute. However, the proposals of the creditors were irrational, needed was another concession.

 Tsipras Greece

Greek Prime Minister Alexis Tsipras in Parliament | © Panayiotis Tzamaros / Pacific Press / dpa

The Greek Prime Minister Alexis Tsipras expects a speedy agreement in the debt dispute with the international donors. “We are on the home stretch,” Tsipras said in the evening in the Parliament in Athens. One solution is as close as ever. His Government had submitted a comprehensive proposal. This shows the “sincere desire” Athens to end the crisis. Tsipras called on the opposition to support him in these last hard days of negotiations.

Offers of international creditors, the EU Commission President Jean-Claude Juncker had presented him this week, Tsipras called nevertheless disappointing. These have reportedly offered to relax the austerity measures for Athens, but demand in return, among other pension cuts, privatizations and tax changes. From Greek government sources said, these demands were unacceptable and could not be a basis for agreement. This did Tsipras told in a telephone conversation also Chancellor Angela Merkel (CDU) and French President Francois Hollande.

Tsipras urged creditors to further concessions on. His Government could not accept irrational proposals, as they had been made to him in the negotiations during the week, he said. To each solution had a form of debt relief are. The Prime Minister said he was optimistic that the partners would withdraw these proposals. Athens wants a comprehensive solution that will fix the issue of Greek debt mountain. “After five years, we need a solution that is going to end permanently the debate about a Greek exit (from the euro zone),” Tsipras said.

The Greek government is under increasing pressure of the left wing of his party Syriza, rejects the continuation of tough austerity measures. Also at the party base there resentment, especially over feared pension cuts and mass layoffs in the civil service.

Tsipras negotiated in February to release the last tranche of a bailout package for Greece in the amount of 7.2 billion euros. Without the money Athens threatened with state bankruptcy and in the worst case, the exit from the Euro. However, the creditors demanded in exchange reform commitments Greece. Tsipras’ proposals rich lenders not. Their demands go too far Tsipras.

On Friday Greece should have to repay 300 million euros to the International Monetary Fund. About a special clause in the IMF Statute Athens reached, however, that these and all other due June rate – a total of 1.6 billion euros – have to be paid until the end of the month. This provides more time for negotiations.

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