Friday, April 24, 2015

After an interview, Tsipras and Merkel evoke Progress – The Obs

Paul Taylor and Reinhard Becker

BRUSSELS / BERLIN (Reuters) – Greek Prime Minister Alexis Tsipras, pleaded Thursday after a meeting with German Chancellor Angela Merkel for a acceleration of discussions for an agreement allowing the payment of new aid to Athens in exchange for structural reforms.

aside between the two leaders took place before the European Council convened an emergency in Brussels to discuss the crisis of migrants in the Mediterranean, on the eve of a meeting of finance ministers of the euro area in Riga, Latvia.

Alexis Tsipras and Angela Merkel noted that ” significant progress “had been made since their last meeting on 23 March in Berlin, said a Greek official.

” The prime minister asked that the proceedings be expedited so that (…) the decision providing a first tentative agreement by the end of April is implemented, “he added.

Angela Merkel has said his side that” everything must be done “to prevent Greece runs out of money before they have reached an agreement on reforms with its international creditors.

She described as “constructive” talks with Alexis Tsipras but added that both had agreed to the content of their discussions remain confidential.

EU officials had earlier said that Angela Merkel wanted, in his interview with Alexis Tsipras, reaffirming its desire to see Greece stay in the euro zone and avoid a default on its debt, but also stressed that the Greek government had to commit on detailed and quantitative measures.

“At the highest level, the Germans want to keep Greece in the euro area and find a solution, but time is running out and it may be that there are new dramas before Tsipras decides to enter into an agreement, “said a senior official.

“PROGRESS NOT SATISFACTORY”

The Vice-President of the European Commission, Valdis Dombrovskis, who was in Berlin on Thursday, spoke of growing doubts about the situation in Greece stressing that financial instability could jeopardize economic growth. He said not to believe in an agreement before the end of the month but in the month of May.

“The progress is not satisfactory,” said he told the channel ARD television.

Greek officials and the euro area said on Wednesday that Greece could probably meet its financial obligations until June using all available cash in the public sector, but that a new help would be necessary to enable it to repay the loans from the International Monetary Fund (IMF) maturing in July and August.

“We can not wait until June to reach an agreement because of our problems cash. We have to find a solution before, “said a government source told Reuters in Athens who requested anonymity.

The Greek daily Kathimerini reported on Thursday that the government planned to ask the European Mechanism stability (MES), country assistance fund of the euro zone created after the debt crisis, to buy back Greek bonds held by the European Central Bank (ECB) for the repayment of maturing debt this summer.

Such an approach would amount to a third aid plan of the euro area and hence require a green light from Member States or of the Parliament of some countries, such as Germany and Finland.

(Marc Angrand for the French service, edited by Tangi Salaün)

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