“It was a good, constructive discussion”, the European Commission announced in a press release at 1:28 clock. “Progress has been made in understanding each other’s positions on the basis of various proposals.” You have in the talks, also attended Euro Group chief Jeroen Dijsselbloem participated, agreed that they would meet again. “The hard work will go on.”
for four months is talked about how the Greek state bankruptcy can be avoided. The international donors had Athens made the offer to pay out loans amounting to 7.2 billion euros. They made the offer but under the proviso that Greece also committed to reforms and austerity measures.
The partners had a terrible succeeded in recent months, to approach content critical. Until recently, the reform of the labor market and the pension system were controversial. In addition, Greece refused to tough austerity measures for fear that the country’s economy to damage even further.
donors came Greece in several points against
On Monday evening, Chancellor Angela Merkel (CDU) had taken together with French President François Holland an initiative to advance the negotiations. Together with the heads of the European Commission, European Central Bank and International Monetary Fund, they discussed the outlines of a compromise paper to which all creditors could agree.
The donors came Greece counter in several respects. So they called in pensions only cuts amounting to one percent of gross domestic product. Previously, they had demanded savings of 1.5 percent.
The austerity measures have been mitigated. The Greeks demanded for the current year a primary surplus – ie a budget surplus without considering the interest payments – of one percent. Next year, Greece had a surplus of two percent and three percent in 2017. In order for the creditors remained significantly behind initial claims that had provided 3.5 percent surplus this year and 4.5 percent next year.
EU wants Greece not the gun on the chest
The international donors had hoped, with their compromise position finally the last four months of negotiations on further loans to Greece to quit. After the negotiations on Monday was in the context of the negotiations of a “last offer” the speech of a “Take it or leave it” approach to German: sink or swim. However,
This did not all look so. The European Commission wanted to avoid some the impression that you put the Greeks the gun to my head. Man working on it, to find a common position, to which the 19 euro zone countries and the three institutions could agree, it was still before the meeting on Wednesday evening in Brussels.
That it could possibly be an agreement on this matter in the nightly discussions of Juncker and Tsipras, few had hoped. The European Commission had already announced before the meeting that no breakthrough is expected. Federal Finance Minister Wolfgang Schäuble (CDU) said he had no information that “substantially changed something crucial” have.
Tsipras traveled with a compromise paper to Brussels
Tsipras had ahead of the meeting with German Chancellor Angela Merkel and French President François Hollande phone. They have stressed that a solution to the debt crisis must be found quickly, was reported from government circles in Athens. The conversation was constructive.
After Brussels Tsipras had brought its own compromise paper, which was apparently the basis of discussions with President Juncker. In 47 pages he outlined reforms to which Greece was ready. Greece hit According to government representatives also to seek this year a primary budget surplus of 0.8 percent compared to economic output.
With its own compromise proposals Juncker, however, did not apparently at Tsipras. It did not go into the discussion about presenting the Greeks a final proposal, but rather to bring the positions, according to EU diplomatic sources. There need time.
Euro group chief Jeroen Dijsselbloem, who also participated in the talks, presented further talks in “a few days” in view. He expressed his confidence that one could agree on reduction targets at least. When it comes to primary surplus to be an agreement very close, he said. Tsipras confirmed this view.
an election if the “red line of the party” is exceeded
Tsipras is also under domestic political constraints. It is an open question whether the left wing of his party Syriza will approve sweeping reforms. Syriza Group spokesman Filis has argued that the Greek government could also call new elections. This applies to the case that donors made demands, which went beyond the “red line” of the party.
Addressing the creditors Tsipras however wanted to send in the night of Thursday, a sign of confidence. When asked whether Athens will make the upcoming Friday for repayment of a rate to the International Monetary Fund (IMF) in the amount of 300 million euros, he replied: “Do not worry, we will pay more.”
On Wednesday the spokesman of SYRIZA parliamentary group in Athens, Nikos Filis, threatened with a pay freeze to the IMF if there is no prospect of agreement .
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