Wednesday, June 17, 2015

Greece: a new Eurogroup, for what? – The World

Le Monde | • Updated | By

In the “Greek case” key appointments are linked, for months, with capitals meetings and summits of last chance. But for now, Athens and its creditors (IMF, European Central Bank and European Commission) have not yet managed to find common ground on the reforms that the Greek government must commit to implement if he wants to reach the 7.2 billion still to be paid under the Country Assistance Plan.

And there’s a safe bet that the Eurogroup to be held Thursday, June 18, in Luxembourg, will not change the scenario. It will be in this case of the seventh meeting of ministers of the euro area dedicated to Greece since the beginning of the struggle between Athens and its creditors, in late January.

  • The Greek government snubs Eurogroup

The Greek finance minister, Yanis Varoufakis has already warned he will come with his hands in pockets, no new proposal agree “reforms against new money.”

From the beginning, the government of Alexis Tsipras seems to “snub” that body, and prefer European summits to discuss head of state head of state.

“This allows to obtain more advantageous compromise. The technical teams, they, generally grow more in the negotiation details, “ notes a source close to the creditors.

They insist them, the need for this body, this embryo Government of the euro area, whose ties were strengthened during the financial crisis, which, for small countries, represents a guarantee to make their voices heard.

  • The tone rises in different parts

“You will see, political speeches are still going to exacerbate that’s part of the game. And then there will be a clash the Eurogroup “predicts a source broken to European negotiations on Tuesday. This clash was already latent Wednesday

The day before, Jean-Claude Juncker, President of the European Commission, had pushed a real rant. “I accuse the Greeks to say Greek opinion of the things that are not consistent with what I said to the Greek prime minister. “ They criticized Mr Tsipras to present the demands of creditors without the shade, while the Commission so far has always worked to bring the points of view.

Earlier Tuesday, the radical left Syriza party leader, he had blasted the IMF, citing his “criminal responsibility” in the current situation in Greece. “The time has come that its proposals are judged not only by us but especially Europe [...] because Europe must discuss not only for Greece but also for the future of the euro area “, he said.

He also denounced the intransigence of creditors wanting accusing the ” humiliate “ Sound country, arguing that his government will not agree to cuts in small pensions or VAT to 23% on electricity.

“I always said I was willing to do all that was possible to keep Greece in the eurozone. I remain committed to this, “, said German Chancellor Angela Merkel to calm down the game, and above all, perhaps, financial markets, more and more sensitive to the Greek crisis.

The US Treasury Secretary Jack Lew, who spoke on the phone with Greek Prime Minister Alexis Tsipras, has, meanwhile, ordered Athens to find a “ pragmatic compromise with its creditors and avoid diving global economic uncertainty.

  • always positions remote

For several days Discussions turn to the dialogue of the deaf, which reinforces the idea that Thursday is unlikely asking something decisive rendezvous in Luxembourg. “Unfortunately there is not much new to talk” , recognized M me Merkel on Tuesday.

On examination the terms of the debate, the impression of treading water dominates. The creditors believe they have already made enough concessions (on Greek budget margin), require that Athens is 2 billion euros of additional revenues and savings, and do not seem ready to move.

Questions that arise are: Athens when she will finally commit to a “complete” list of reforms? Should we or not to extend the second aid package to the country? How many months: two, four, nine? Should partial or total disbursement of $ 7.2 billion of loans remaining to be paid in Athens as part of that bailout plan? The line of 10.9 billion euros for the recapitalization of Greek banks can it be used to pay creditors?

The most optimistic still hoped Wednesday that Thursday’s Eurogroup would provide enough material – the premises, finally an agreement – to be able, following convene a summit of the euro area heads of state which would lead him to an agreement

<. p> “For such a summit should be that we receive a clear signal that the Greeks are going to move, it is not obvious,” however fell a source close to the talks said Wednesday.

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