Little Time? At the end of the text there’s a summary.
It’s done. Anyway something. At least the creditors of Greece, represented by the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF), have their differences apparently largely resolved. The proposed text for an agreement with the government in Athens on a reform program in return for payment of the last tranche is currently being drafted. Small flaw: The debtor, therefore, the government in Athens must also still approve.
Last we went with the creditors in particular to the question of how high the Greek budget surplus will turn out in the future. The IMF urged it first to target a primary surplus of four to five percent of Greek economic performance. The European Commission wanted to reportedly settle for a percentage – a number that has apparently made in the current paper
The so-called primary surplus means the budget surplus of the State, which remains before interest payments and debt servicing. , This value is so important, because the government in Athens would have sufficient financial resources in a lush excess of five per cent, to invest and thus contribute to economic growth.
In order to achieve the same objective even if a lower primary surplus, would the repayment obligations will be stretched further – one of the concessions that make creditors now seem willing. A real haircut but there will not be thus.
the announced amount of the primary surplus as determined also the whole package: The higher he goes down, the stronger the Greeks have to save on their spending or increase revenues.
Even if the creditor should be made only on one percent surplus, which means for the Greeks again harsh cuts. Greece is likely without reforms this year achieve a budget deficit, as the recent political squabbles have had to break the growth and tax revenues again.
Getty Images
Merkel, Hollande and Juncker in the Chancellery: breakthrough in mini-summit
Nevertheless: The small peak in the Berlin Chancellery on Monday night, so it will be sold in Brussels, said to have brought the breakthrough in months of negotiations. Now it’s just a matter, as the (perhaps really last) proposal is the Greek Prime Minister Alexis Tsipras presented – by letter or fax, at a meeting or by teleconference. Time is pressing. On Friday a 300-million-euro loan from the IMF rate will be charged.
It remains unclear how the Greek government will react. Prime Minister Tsipras had hinted that his government was prepared to make concessions. There is already progress in reforms of the administration and VAT. EU Economic Affairs Commissioner Pierre Moscovici pointed also to that Tsipras pension cuts and an increase in the retirement age could agree – two points at which controversy had ignited
But it would be surprising if suddenly everything was smooth running.. In Greek television Tsipras had himself spoken yet on Tuesday morning by a separate comprehensive reform plan “realistic” proposals, which he had sent to international lenders – who would now decide whether to accept the plan or not.
criticism, there were also the shirt-sleeved actions of creditors – the meeting of two EU leaders with the heads of the EU Commission, the IMF and the ECB is not the official body for the negotiations with Greece. So the Green MEP Sven Giegold accused Chancellor Angela Merkel, it also celebrates a “German EU” and let all leaders “antanzen in Berlin”. But above all annoyed Giegold that the Euro Group “disempowered” and neither will the European Parliament nor the Bundestag had been informed.
While the European Commission stressed that the Euro-group was informed at all times and that the creditors’ speak with one voice “. Euro group chief Jeroen Dijsselbloem seemed confident mood but obviously too hasty. About Dutch television he sent a warning to Athens: Greece could not expect any concessions from its funders. “We will not meet them halfway,” said Dutch Finance Minister. “It made progress, but it’s really not enough”
In summary:. IMF, ECB and EU Commission have to be agreed a well last joint reform proposal – now needs to accept it Greece. Prime Minister Alexis Tsipras sends conflicting signals, the time for negotiations is running out.
No comments:
Post a Comment