Agreement with Greece: Proposals of the Eurogroup – The World

The heads of state of the euro zone planchaient, Sunday, July 12 evening, a document that had sent their finance ministers, at 16 o’clock, As they passed the torch of their negotiations with Athens. A text “very bad” according to Greek officials, which led to a deadlock situation, Sunday night.

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In the evening, this document has been circulating in the press revealing the hard line taken by some of the euro area this weekend with regard to Greece. Until now united against the Greek government of the radical left, the Eurogroup has shown real divisions Saturdays: some of the countries of the euro zone – France, Cyprus and Italy – supported Athens, while most other State say they no longer could trust him and réclamment additional guarantees to any new bailout plan

Read the summary of the day Sunday. Summit on Greece: lock on Eurogroup requirements

The text of four pages first and focuses on “the critical need to rebuild trust with the Greek authorities” . To do so:

• It calls for full involvement of the International Monetary Fund , which has so far refused to hand out to the pocket because of failure Greek Payment officially recorded since 1 ^st of July. The Eurogroup, however, poses the support of the institution as a prerequisite for any new assistance program through the European Stability Mechanism. . The amount of it is estimated at between 82 and 86 billion euros in the document

Then the Eurogroup asks Greece efforts in three steps:

• Until July 15, that is to say Wednesday, Athens must take a series of priority actions including, among other things, a reform of the VAT system and fiscal or early action preparing a reform of the pension system.
• If Tsipras government manages to pass these measures, it would open the way to a multilateral agreement which will itself new series of conditions : a tightening of the reforms proposed by Athens by taking better account of the economic and financial situation in Greece, a pension reform, trade reform in line with OECD recommendations (including measures on Sunday work or the regulation of balances …), the privatization of the electricity company, a revision of labor law (for collective bargaining, collective redundancies …) and a strengthening of the financial sector.
• Finally, and more broadly, it refers to the modernization and strengthening of the Greek administration, improved methods of working with the European institutions. Most importantly, it recommends a wave of privatizations , or – the heads of state are still negotiating on this – the establishment of a fund based in Luxembourg, responsible for the management of privatizations and assets which emanate. A proposal Alexis Tsipras firmly rejects. But the only alternative to this, on which portrays Germany, appears at the very end of the document, without having made unanimously at the Eurogroup: “If an agreement could not be found, Greece would offer speedy negotiations temporary exit from the euro zone with the possibility of debt restructuring. “

Here is the entire document:

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