Brussels – Greece wants to “keep their heads above water,” offers … – The Express

Brussels – Greece wants to "keep their heads above water," offers … – The Express

The new Greek leaders continued their European tour to try to convince of the need to reduce the burden of the huge debt of the country. Prime Minister Alexis Tsipras, went through Brussels before meeting with President Francois Hollande in Paris.

His finance minister, Yanis Varoufakis, visited him at the headquarters of the European Central Bank in Frankfurt before a crucial meeting Thursday with his German counterpart, Wolfgang Schäuble. Chancellor Angela Merkel has estimated that there were no differences “ on the bottom ” between the Member States of the euro area, a few days of the summit of Heads of State or Government of February 12th.

President François Hollande has advocated “ two principles ” the “ solidarity ” but also the “ respect of (…) European rules which apply to all “. Alexis Tsipras has in turn called on France to play “ a leading role, guarantor ” for growth in Europe.

Earlier, in Brussels, he proposed the preparation with the European Union a plan of reforms and funding over four years (2015-2018), said a government source in Athens. This plan includes a program “ radical ” in the fight against corruption and tax evasion, coupled with an easing of budgetary obligations of Greece, the source said.

Prime Minister also mentioned the possibility of “ transitional agreement ” giving Greece financial margin enabling it to prepare this plan “ public “with the EU, is it has the same source after a meeting with the President of the European Commission, Jean-Claude Juncker.

– “ strenuous efforts ” –

Mr. Tsipras said he was “ very optimistic ” the possibility of “ find a viable solution for our common future “. The Commission made no comment. In Brussels circles, the European tour and interviews all-out Greek leaders tend to irritate. “ If it is divided, it is not good ,” said a European source.

Negotiations “ will be difficult, will require the cooperation and strenuous efforts of Greece ,” said the President of the European Council, Donald Tusk.

Mr. Varoufakis reported having “ fruitful discussions ” with the president of the Central Bank, Mario Draghi. “ The ECB should support our banks so that we can keep our heads above water ,” has he said in an interview with the German weekly Die Zeit, where he admits to being ” Minister of Finance to a failed state “.

The institution plays a pivotal role in the race against the clock in which the Greek government is committed to prevent default. Greek banks are the main buyers of bonds that Greece is short term finance. And that’s basically the ECB through two loan schemes, which feeds into cash.

Mr. Draghi “ clarified the mandate of the ECB and urged the new government to engage constructively and quickly with the Eurogroup for maintaining financial stability ,” said a source in the central bank. Mr. Varoufakis acknowledged having discussed with Mr Draghi “ constraints ” and “ rules ” under which the ECB pays his helpers, implying that Mr. Draghi was reluctant to go beyond the strict procedures that govern support for Greek banks.

Meanwhile, the International Monetary Fund said that he had no “ chat ” with Athens on a renegotiation of its debt. In an interview published on Wednesday, Mr Varoufakis said it had “ started negotiations ” with the IMF to replace its existing debt by more recent securities whose repayment is linked to the return of growth “ strong ” in Greece.

Athens has completed Wednesday its first bond issue since the arrival of the radical left in power, but in the working conditions. The country has raised 812.5 million euros of bonds maturing in 6 months, with an interest rate of 2.75%, against 2.30% a one month.

By