Greek Prime Minister Alexis Tsipras makes a tired, but self-confident impression. When the young Prime Minister, the Council of the European Union buildings in Brussels after 17 hours negotiations left because his eyelids seemed heavy to hang. But he smiled. “We have a good fight out,” he said. It had prevented “extreme measures”.
His confidence and his will to fight will have to get Tsipras. After the grueling negotiations in Brussels, he will have to present this pace in the coming days and weeks, also implement the agreement – and for that he needs the backing of his own Syriza Party
The leaders gave themselves an ambitious timetable in order to protect Greece against the state bankruptcy and to rehabilitate the country’s banks again. And for this it is necessary that Greece is “without delay” on the first reform measures. It is a measure to rebuild lost confidence, it is clear from a joint declaration by the leaders.
On Tuesday, at the latest on Wednesday, to the Parliament in Athens decide on an initial reform list, which provides about a value-added tax reform and some components of a pension reform. Athens should also adopt an automatic brake issue and set up a fiscal committee to control expenditure. By the middle of next week, a judicial reform to be launched.
Tsipras likely it however not be easy to convince his party colleagues and the right-wing populist coalition partner of the Independent Greeks it. The ruling party Syriza had been selected but with the promise earlier this year into office, to break with the “austerity” felt Troika Policy. Against this background, the government in Athens had recommended to reject the austerity and reform conditions in a referendum.
Premier Tsipras has now the reforms start
The partners still appear confident that Tsipras will deliver now. “I am convinced that the Greek government can bring any decisions today by Parliament,” said European Commission President Jean-Claude Juncker in the morning in Brussels. And the other members of the Euro-special summit could turn recognize no doubt.
You can point out that the Greek Parliament had approved a catalog of reforms and austerity measures as early as Thursday, which largely corresponded to the requirements that a few days had previously been still rejected by the Greek population.
There were several dissenters in the ranks of the ruling party Syriza. Nevertheless reached Tsipras, also using opposition parties, a broad consensus.
Tsipras has barely maneuver for further delays. The banks in the country have been closed for two weeks. And there are strict capital controls, the maximum withdrawals of 60 euros per day provide.
will put in place until a third loan package to it is hardly anything can change. Another reason why everyone want to pace about to begin negotiations quickly.
Several euro-zone countries have their parliaments surveys
After the vote in the Greek Parliament will the Euro- Treasury likely to advise in a conference call on Wednesday. Ideally, they must then only take note that the Greek Parliament has delivered. Subsequently, the euro partners of Greece are asked to agree to the opening of negotiations.
Even which is a complex political process. In several euro area countries, the parliaments must be consulted. This partly MPs need to be ordered from their summer vacation back in the capitals. That will be the case also in the German Bundestag, which also houses the so discontent with Greece is great. No later than Friday, the parliaments should have agreed.
German Chancellor Angela Merkel, however, announced that they will not join the vote on further negotiations with Greece with a confidence vote , She hopes for the strength of their arguments – and a broader majority in the grand coalition. At least in the SPD is likely to consent to give the Greeks once again a chance to be great.
Until Friday, so it looks the timetable, should all euro partners have agreed. Following the Board of Governors of the euro stability mechanism (ESM ) will hold meetings. In the body, the euro zone finance ministers are represented. You will then instruct the troika of European Commission, European Central Bank and International Monetary Fund to lead the discussions.
EU finance ministers are looking for a bridge financing
How long that will take is unclear. “Several weeks” would be, Euro Group president Jeroen Dijsselbloem said Monday morning in Brussels. On Monday afternoon, he is in the circle of the Euro Group then have to talk again about Greece. The euro zone finance ministers to find a solution for that is still that Greece can meet current liabilities. Seven billion euros needs the government alone no later than July 20th. Until then, is likely to be negotiated no new loan package. What is needed is a bridge loan.
The European Commission has already announced plans to make proposals for such a bridge financing. It is conceivable that resorting to profits, which made the central banks with Greek government bonds. However, other funds would probably be tapped.
In the coming weeks, then are the conversations about actual credit program on the agenda. There are critical issues to be addressed: a tougher pension reform, an opening of product markets, clear steps in dealing with the banks defaulting creditors.
In addition, a privatization fund be set up. Also an administrative reform to be agreed. And with all should also admit that the Troika can also work from Greek soil again Athens.
One thing is certain: The next few weeks will be grueling. And of hard work.
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