Euro partner dissatisfied with Greece proposals – Reuters Germany

– Andreas Rinke and Tom Körkemeier and Angeliki Koutantou

Brussels / Athens (Reuters) – Greece’s reform proposals present the Euro-partners not out.

You want this Sunday in another crisis meeting a solution in dramatically pointed debt dispute find. Previously parted without joint statement at midnight the euro zone finance ministers (Euro Group) after more than nine hours of deliberations in Brussels. They wanted in the morning (11.00 clock, CEST) continue discussions. In the afternoon (16.00 clock) should then meet the leaders of the monetary union and then the EU. It’s about whether the fallen into payment arrears Greece is to receive from his backers another bailout for many billions of euros or possibly suspend the membership in the euro area.

“The question of credibility and trust was discussed and also of course the question of finances, “said Euro group chief Jeroen Dijsselbloem after the meeting and spoke of difficult conversations. The finance ministers demand that the government in Athens both further reforms and guarantees of their implementation, as reported from the round. Thus it comes about by commitments to restructure the labor market and management, for privatizations and major cuts in the defense budget. According to EU representatives unanimously agreed that Greece must make additional efforts to convince the partners that it keeps its promises and repay its debt. However, different was the readiness to engage in new agreements with Athens. “A clear majority is against it to open negotiations for a third aid package based on the Greek proposal,” it said in participating districts. Dijsselbloem have postponed the discussions, as there had been heated debates, the precise demands were to ask now.

Federal Government is ATHENS the choice

The tips of the federal government to put pressure on Greece: After consultation with Chancellor Angela Merkel (CDU) and SPD leader Sigmar Gabriel Finance Minister Wolfgang Schäuble (CDU) the Euro-partners presented a paper with two options. The document Reuters present a bunch of other reforms required as a trust fund for privatizations. If Athens does not want to go this way, remains the option of a temporary withdrawal from the euro zone for five years, according to the unofficial proposal. According to several government officials the possibility of a so-called Grexits however, was explicitly addressed by anyone. Schäuble emphasized: “We are certainly can not rely on promises us.” The hope of improvement in Greece had been destroyed “to the last days and hours into it” in incomprehensible ways, he said before the meeting of finance ministers.

You should decide whether the plans Athens sufficient to more than actually three-year aid package of euro rescue fund ESM to negotiate. It is according to representatives of the euro area to include new grants in the volume of 82 billion euros. Only to recapitalize – closed already for two weeks – banks were EUR 25 billion required, BelTA learned from the three creditor institutions International Monetary Fund (IMF), European Central Bank (ECB) and European Commission. The IMF has brought an extension of the duration to both old and new Greek bonds to 60 from 30 years this week, so that the debt burden was sustainable. In a first reaction institutions negotiation sources said that had expressed cautious approval to the Greek proposals. In the euro group then showed, however, that the majority of finance ministers was skeptical.

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