Brussels (AFP) – The euro zone on Monday launched an ultimatum to Greece to accept by Friday, extending its recovery program, the Greek Minister saying that he still confident about the possibility of an agreement within 48 hours.
It is “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 all “said at a press conference the chairman of the Eurogroup Jeroen Dijsselbloem after the abrupt interruption of negotiations between minisres of Finance of the Eurogroup in Brussels.
He referred to the possibility of a new special meeting of the same ministers Friday. “Provided that the Greeks call for extension and have a valid request,” according to the entourage of Mr. Dijsselbloem. “There is no alternative to the extension of the program,” added the European Commissioner for Economic Affairs Pierre Moscovici adding “we will continue the dialogue this week.”
The Greek Minister Yanis Varoufakis, was, he was confident about the possibility of an agreement. “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” for Greece, he has said.
The next appointment is set at Tuesday morning with a meeting of finance ministers from across the European Union.
German side, it does however, was not about compromise Monday night if Athens did not operate a 180 degrees to the campaign promises of the new government dominated by the radical left. “The Greeks have to write a letter” they accept the conditions set by the euro area, and this letter should be “verified by the three institutions’, ie the European Commission, the IMF and the European Central Bank, international creditors Greece, is it appropriate to German diplomatic source
-. ‘Unable to sign’ –
Mr. Varoufakis said he was ready to sign an agreement prepared by the European Commission recognizing the seriousness of the “humanitarian crisis” in Greece and offering “an extension of four months of the loan agreement” with creditors.
This agreement, Greece would have accepted it is subject to “conditions”, would have to sign a “new contract” between Athens and the euro area, has he said. In exchange, the Greek government was ready to “do not apply for six months its own program,” on the sole condition “not to be imposed measures creating the recession,” Mr Varoufakis said. Among them, a VAT increase or decrease of the lowest pensions.
“Unfortunately, this document has been replaced” before the Eurogroup meeting with a text by Mr. Dijsselbloem has -t he accused. “It was impossible for us to sign this document,” offering an “extension of the current program,” added the minister.
“absurd and unacceptable,” the Greek government reacted immediately. Athens had already refused such a formulation Wednesday said Mr Varoufakis. The text certainly foresaw a “flexibility” but, according to the minister, it was a promise too “nebula”.
For Europeans, obtain an extension of a few months of the current program, expiring February 28, would keep on hand driven reforms in the country in exchange for loans of some € 240 billion.
Without an agreement soon, that Greece can not borrow that at prohibitive rates in the market and is facing major repayment deadlines in the coming months, could end up short of money, with the term risk of a euro exit. It could survive financially until the summer but “with limited liquidity,” analysts said.
The German Finance Minister Wolfgang Schäuble immediately “skeptical” about the chances of a Agreement had Monday denounced the attitude “irresponsible” of Athens.
Greece and the euro area had multiplied the preparatory meetings in recent days. Technical meetings were held Friday and Saturday in Brussels to identify possible points of compromise.
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