Athens considers that Greece and the European Commission “are closer than ever to an agreement” that would allow the financing of the country.
communication exercise or real progress? Greece is about to Saturday from new reform proposals to its creditors, who do not hesitate to discuss the possibility of a default, far taboo if negotiations on the continuation of the country’s financing does not lead in the coming days. June 30, Athens has to repay 1.6 billion euros of IMF loans, and doubts remain about its ability to meet that deadline without the release of 7.2 billion remaining to be paid under the plan help, in addition to the payment of salaries and pensions. But the release of this assistance depends on the implementation of reforms that Athens and its creditors, EU and IMF will écharpent for nearly four months.
Summoned all shares moving, Athens announced that a high-level delegation would visit Brussels to present Saturday at the “against-proposals” to its creditors with a view to an agreement on the financing of the country. The Greek government believes that the two sides are “closer than ever to an agreement.” The delegation will be composed of Ioannis Dragassakis, discreet chief negotiator of the Greek government, Euclid Tsakalotos, Deputy Foreign Minister Nikos Pappas, the right arm of Tsipras, said a Greek government source, without revealing what would be their interlocutors in Brussels .
A cash-strapped Greece risk of default if it fails to reach agreement with its creditors before the next meeting of Finance Ministers on 18 June
The discussions for a trade have accelerated in recent days. Prime Minister Alexis Tsipras successively met the German Chancellor Angela Merkel and French President Francois Hollande in Brussels on the sidelines of a summit devoted to Latin America. He met Thursday with President of the European Commission Jean-Claude Juncker, who willingly plays the mediator in these difficult negotiations. Both parties agreed that there was still work to try to resolve their differences.
endless negotiations
The Both men spoke Friday by phone for an update on the progress of negotiations at the time the statements are multiplying to instruct Athens to move. Among the sticking points of negotiations, included the pension reform, rising to 23% VAT on electricity and the level of budget primary surplus, which determines the amount of savings to be made by the country.
“Technical prerequisites” of an agreement are in place, said Valdis Dombrovskis, Vice President of the European Commission, which found “a lot of progress” in the talks.
But in Brussels, the feeling is that the Greek government blows hot and cold: “each time, the encouraging reality of the technical work is out of step with political statements and postures necessarily more hard, “says a source close to the discussions.
These negotiations seem to have endless weary Germans, according to a survey released Friday. They say for the first time, a narrow majority of 51%, in favor of a Greek exit from the euro zone, a scenario now officially mentioned.
“A default ( Greek) is under discussion, “but this is not the same as a” Grexit “term for an exit from the eurozone, an EU source acknowledged. “This is to prepare for the worst,” added another source close to the talks. This scenario was discussed Thursday at a preparatory meeting of the Eurogroup, and caused the fall of the Athens Stock Exchange Friday (-5.92%). On other financial centers in Europe, Paris lost 1.41%, 1.20% and Frankfurt 0.90% London. “We have to evaluate all possibilities, but I hope that the Greek authorities will take stock of the situation”, justified to AFP Sadzius Rimantas, Lithuania’s Minister of Finance confirming that this hypothesis was put on table.
Ideally, an agreement by next Thursday. “If the Greeks work this weekend and send a proposal Monday, it can work. If they send a proposal Wednesday (…), it will be necessarily more complicated, “commented an EU source. The Greek Defence Minister Panos Kammenos is “June 18 or never” an agreement must be sealed.
Source AFP
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