The disagreements remain between Greece’s creditors – The World

Le Monde | 06/06/2015 at 9:50 • Updated 06/06/2015 at 10:09 | By Adéa Guillot (Athens, correspondence) and Cécile Ducourtieux (Brussels, European office)

This promises to spoil a little “party” in the G7. Merkel fervently hoped an agreement on Greece so that the subject does not come cluttering discussions and minds of world leaders that it receives this weekend in Bavaria. It will not happen. In a speech to his parliament offensive, Friday, June 5, the Greek prime minister, Alexis Tsipras, has formally rejected the final proposal for an agreement of creditors of the country, hand-delivered two days earlier in Brussels, which was similar too an additional austerity plan for the country

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In addition, according to our information, important disagreements remain between the IMF and the European creditors, particularly on the issue of Greek debt, while yet they seemed to have found a common position, following the strong political impetus given by President François Hollande and German Chancellor Angela Merkel in Berlin, 1 ^st June The two leaders are now following the Greek negotiations overnight, wanting absolutely to avoid a default of Athens, the political consequences, even geopolitical, incalculable.

A very delicate political situation

Friday, June 5 in the evening, before the Vouli (Parliament), Alexis Tsipras said he would not accept in the state “absurd proposals” creditors and denounced the lack “ethics” of the financial strangulation strategy chosen, he said, for European leaders to push Greece to a compromise with nothing a ” agreement of mutual interest “ but translating ” a desire to humiliate and bend a people. “ He tried to invite the opposition parties to national unity, but provoked fierce criticism of the Conservative party and the center-left party To Potami, including President Stavros Theodorakis, denounced in the Chamber “negotiating strategy” government

Read also:. “Syriza is part of the old political system”

The Premier took office in January on the promise ‘do away with’ diktats’ from Brussels, is in a particularly delicate political situation. It is caught between creditors unwilling to compromise and a parliamentary majority now openly calling for the break with Brussels.

The “draft” Brussels determines de facto the payment of 7.2 billion euros remaining in the second aid package to Greece at a pension reform (with lower pensions) and a VAT increase, especially for electricity. Two measures unacceptable, insisted Mr. Tsipras on Friday night. However, the proposal gives the creditors more fiscal space in Athens, at least for the next three years, setting a target of primary surplus (before payment of debt) of approximately 1% in 2015 (against an initial target of 3.5%). On this point, according to our information, there are now near consensus between Greece and its creditors.

The IMF stands his ground

At this point given the statements Tsipras, difficult to envisage a final agreement if the creditors do not amend their somewhat “draft”. Yet would it they agree. Now discussions are lively in recent days between the IMF and the European Commission. The latter continues to accuse the international organization for not wanting to give an inch on pensions and the increase in VAT, and not take enough account of the difficulty or even impossibility Tsipras policy of “sell” such measures in Athens

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Meanwhile, the Fund denies being too rigid, but warns the Commission and the other countries of the euro area, all creditors of Greece, if the structural reforms demanded of Athens are not ambitious enough and radical, the country can not repay its huge debt (180% of GDP, 320 billion) at the pace they hope. The IMF also advocates that the final agreement includes a clear commitment by creditors to open a renegotiation of the debt, while in Berlin it would rather defer this issue to a subsequent negotiation in the coming months … On this point The Fund Tsipras joined the government, which insists much in recent days, that the agreement addresses the issue of debt sustainability.

The most optimistic are still hoping a final agreement endorsed by Eurogroup before mid-June to Athens can receive the first loan installments before the end of June. Perhaps it take a new political impetus to unlock the latest tensions? The G7 Sunday 7 and Monday, June 8, perhaps will be the occasion.