Both the extraordinary meeting of finance ministers had dragged on late into the evening last Wednesday as that of Monday was rather short. But the admission of failure is ultimately the same. Greece and its partners in the euro zone are still not able to agree. The dispute was such that he had to cut short the discussion.
The negotiations broke down over the future of the economic adjustment program imposed on the Greeks in exchange for European funding and the IMF. According to the president of the Eurogroup, Dutch Jeroen Dijsselbloem, finance ministers agreed to demand their Greek counterpart, Yanis Varoufakis, it requests an extension of this framework beyond the February 28 date which is due to expire. Otherwise, Greece will not touch the European money she desperately needs to finance itself.
Varoufakis still resists
A requirement that Yanis Varoufakis obviously did not want to subscribe, who does not want to hear about the plan overseen by the troika (ECB European Commission, IMF), accused of having turned the country into “debt settlement”. The government formed the radical left Syriza, who promised voters to finish with the cure of austerity, asking instead develop an interim program, the time to pass a new agreement with its European creditors of here in June.
The distinction between this intermediate program (bridging program) and “the extension of the” current desired by Europeans is not just a problem of vocabulary.
No agreement on the substance of the reforms to make
Yanis Varoufakis said he was ready to take on 70% of the measures imposed by Europeans since 2012. But no more. And proposed to replace the remaining 30% by various reforms such as the fight against tax evasion and tax fraud. It is not able to convince its partners of economic efficiency of this alternative plan. Technical discussions that took place Friday and Saturday between Greek specialists and representatives “institutions” (the word troika is now banned) did not ensure the ability to Athens to meet the objectives assigned to it eg in budgetary terms.
“There was no solid common basis to see what this program adjustments could look like and how much of the program would be effectively implemented,” summed Jeroen Dijsselbloem. In these circumstances, the Europeans refused to let the current program, the only way to guarantee the continuation of efforts they deem necessary.
Compliance with rules required
They returned the ball firmly in the camp of the Greeks claiming to be willing to be flexible and adapt the details of the measures, provided that Athens make a gesture of good will and submit a prior request for an extension in accordance with EU rules in such cases. It is “very clear that the next step is to come from the Greek authorities (…) and in view of the calendar, we can use this week, but that’s about it”, has dealt Jeroen Dijsselbloem while a request extension must be approved by several national parliaments (including the German parliament) before February 28. Pierre Moscovici, the European Commissioner for Economic Affairs, drove the nail. “There is no alternative to the program’s request for extension of the union as the institutions operate from rules and these rules must be respected “.
The cons-attack Varoufakis
Yanis Varoufakis has yet pretended not to understand, at a separate press conference. “I have no doubt that in the next 48 hours, Europe will manage to submit (a document) so that we begin the real work and put together a new contract,” said the minister to head strong.
The Greek Finance Minister has especially against attack by explaining he was close to signing a draft statement prepared by the European Commission. According to him, the text recognized “humanitarian crisis” in Greece and offered “an extension of four months of the loan agreement.” In exchange, the radical left government would have been willing to “refrain from applying for six months its own program,” provided condition “not to be imposed measures creating the recession” as an increase in VAT or lower small pensions. The draft compromise would have been “replaced” at the request of certain States.
“We will not ask for extension” (Defence Minister)
No new Eurogroup meeting on Friday to reach an agreement, the situation would become very difficult for Athens. Funding for Greece depends on the emergency liquidity program of the Central Bank of the country, which supplies its banks. Lack of political agreement between the country and its partners, the ECB could threaten to withdraw this lifeline temporary vocation. Very quickly, the Greek state would end then unable to pay its bills. What bring it quickly to the right or push it towards an exit from the euro …
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