Still no agreement between Greece and its creditors, who have decided to present their own proposals as the basis of an agreement to finance ministers of the Eurogroup it . Thursday at 13:00
Greece and its creditors are still not reached an agreement on Thursday morning, before the Eurogroup meeting -the fourth in eight days – under 13:30, and “institutions” (European Union, ECB and IMF) therefore preparing to submit their own proposal to the finance ministers of the euro area. There will be two texts on the table, and, more than ever, it is time to face the ultimatum of creditors in Athens.
The diplomatic activity was frantic, it Thursday morning in Brussels framework for further negotiations with Greece to avoid payment default looming, whose new Eurogroup meeting, followed later by the summit of the 28 heads of State and Government of the European Union long planned, but do not cut the subject.
Horizon again clouded
After the negotiations between Greece and its creditors have been electric. While the concessions made by Athens Sunday evening had seemed to open the way to an agreement, the horizon is clouded again Wednesday. All afternoon, Alexis Tsipras locked himself in the seat of the European Commission with the representatives of the former Troika (Jean-Claude Juncker for the EU executive, the ECB Mario Draghi, Christine Lagarde for IMF) and Jeroen Dijsselbloem, President of the Eurogroup, to try again to bring the points of view.
A failed attempt, so that the meeting which followed the finance ministers of the euro area – the only ones able to seal the deal – came up short in the evening. Barely an hour, the time for Jeroen Dijsselbloem to explain the reasons for the continuing stalemate. So Aléxis Tsipras and representatives of creditors are contained in stride a part of the night to try to break the deadlock. They must do it again Thursday morning at 9 o’clock. Following the Eurogroup what is supposed to meet once again this Thursday at 13 hours, hoping finally give the green light to the disbursement of aid of 7.2 billion euros which Greece desperately needs to avoid default.
An express Eurogroup meeting on Wednesday night
The meeting of finance ministers of the eurozone ended in barely an hour on Wednesday night, said the Finnish Minister of Finance. “It’s over for today. The Eurogroup will resume tomorrow at 1:00 p.m. “, tweeted Alexander Stubb. According to a European source, discussions between the Greek Prime Minister Alexis Tsipras Athens and creditors should continue in the evening in Brussels.
few minutes later, Valdis Dombrovskis, Vice President of the European Commission, declared that “the institutions will continue discussions with the Greek authorities to arrive by morning an agreement to submit to the Eurogroup “.
Elan policy
“They will spend the time they want, but they must reach an agreement by themselves” , warned before the Eurogroup a European source. The Heads of State and Government had indeed no desire to see it reappear folder on their table at the summit scheduled on Thursday and Friday, so they had to take up the issue Monday at the express request Alexis Tsipras. “The Monday meeting helped give political impetus, but it could not solve everything. There is no alternative to a political resolution of this technical case “, said a senior European diplomat.
Technical Regulations
This technical regulation is particularly hard to get that creditors are not necessarily on the same line. Tuesday, he appeared and the European Commission was rather pleased with the proposals made by Greece on Sunday night. But the IMF did not agree and this uncompromising position appeared to contaminate the former Troika demands made on Wednesday. “The IMF considers that Greece has much too much emphasis on tax increases and not enough on spending cuts” says one close to the negotiations. This explains why the former Troika has finally demanded Alexis Tsipras simply renounce many of his measures. Among them, the exceptional 12% tax on companies making a profit of at least 500,000 euros, or strong employer contribution increases for pensions.Sur the issue of pensions, creditors are again mounted at the front, asking new concessions as advancing to 2022 the transition to 67-year retirement age and the phasing out by 2017 of the aid to the poorest pensioners. The former Troika also wanted deeper cuts in the defense budget. However, the views were closer to the problems of VAT, reduced rate on electricity (13%) plus constituting a casus-belli do.
These new demands made at the instigation of the IMF have not helped the already antagonistic relations between Alexis Tsipras and Christine Lagarde. “This strange position hides two possibilities: either they (the institutions) do not want to agree, or they serve particular interests in Greece” , launched the Greek Prime Minister on Wednesday morning, implicitly to an IMF and Lagarde tried intransigent. Athens also its side remains firm on its demands for debt relief, another point of tension with its creditors. Greece “insists on a transfer of part of its debt” held by the ECB to the eurozone support fund, the ESM, at rates and better terms for her , said Wednesday the Austrian Finance Minister Hans-Jörg Schelling. “For many countries, it is a third program (assistance) disguised” , he added. The Europeans hinder this issue of debt sustainability and would only discuss the prospect of a future restructuring to an agreement with Athens, presenting the topic later.
Lagarde refuted the “legend of the IMF Grandpa, uncompromising and inhuman”
Christine Lagarde criticism in an interview to the magazine “Challenges” to published Thursday “the legend of the IMF Grandpa, uncompromising and inhuman” , amid tensions between the institution she heads to Athens. She was questioned about going back to the days of the Greek Prime Minister Alexis Tsipras, attacking the “criminal responsibility IMF” .
“The invective and insults do not advance the debate “, said Executive Director of the International Monetary Fund in this interview conducted on June 18, defending his institution that ” resolved crises in the world for sixty ten years “.
Christine Lagarde, who also states ” consider “ a second term as Director General if IMF members ” I want to continue to serve “ had indirectly criticized the Greek attitude by claiming discuss ” with adults “ after a failed meeting in Luxembourg on Thursday.
since the tone s is not softened between the two protagonists.
Renaud Honoré
Brussels Office
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