Julien Ponthus and Renee Maltezou
BRUSSELS (Reuters) – The European partners of Greece Sunday urged Athens hired to restore broken trust by years of unfulfilled promises, prior to a vital new bailout to avoid a “Grexit”.
The finance ministers of the eurozone, meeting in Brussels since Monday, have forwarded a draft circulated to heads of state and government arrived Sunday in Brussels.
They have taken over and must address this text which lists the conditions for engaging with Athens negotiations for a third aid package.
“It there is a very good proposal on the table (…) but which has a high conditionality, on three points, “said Finnish Finance Minister Alexander Stubb.
laws must be adopted to by 15 July, for example on the VAT increase and pensions, reform of labor market needs to be implemented and the privatization program should be strengthened, he has said.
“The package must be approved by the Greek government and the Greek Parliament, and then we can watch (to open negotiations on an aid plan),” said Alexander Stubb, whose country is very reluctant .
The Eurogroup president, Dutchman Jeroen Dijsselbloem, welcomed the progress made.
“We have come a long way but there are still some major issues to resolve This will be the heads of government to decide, “said he said after a Eurogroup meeting that gave rise to very tense exchanges.
” A FLOWER SKIN “
The Greek prime minister, Alexis Tsipras, has arrived in Brussels with a proactive message, even if many Greeks feel that one seeks to humiliate them.
” We can reach an agreement this evening if all parties want, “he said.
In keeping with its positioning” savior “of the unity of the euro zone, Hollande abounded in the same direction.
“France will do everything to reach an agreement this evening to Greece if the conditions are met, to stay in the euro,” said the French president whose relationship with Merkel was put to the test in recent weeks.
But the Chancellor insisted on his arrival in Brussels on the fact that nothing was done and that the negotiators nerves were “flush skin “, insisting, like most leaders, the lack of” trust “vis-à-vis Athens.
” Tonight we will see if the conditions are right for launching Negotiations on an ESM assistance program (European Stability Mechanism) for Greece. That is the subject, nothing more and nothing less. Do we succeed or not, will have to see, “said she told the press.
The approval Saturday by the Greek Parliament of a reform program similar to that proposed by creditors and rejected by referendum in Greece there is one week was not enough to reassure the group known as “hawks” who is powerful in the euro area.
These proposals were deemed insufficient by countries such as Germany and Finland, although France and the experts of “institutions” – European Commission, European Central Bank and International Monetary Fund (IMF). – gave their favorable opinion first Friday
“Grexit” PROVISIONAL?
The German Government has circulated a document referring to the scenario of a “Grexit” provisional five years if Greece does not respect its promises.
To allay their fears, the Eurogroup has worked to draft a statement detailing new measures, including liberalization of the economy, in addition to the reform plan presented by the government of Alexis Tsipras, without reaching a comprehensive agreement.
In addition to these reforms, Greece may be forced to accept to transfer 50 billion euros of state assets in a guarantee fund.
Some European leaders fear that after obtaining funds, the Greek government does not interrupt the implementation of privatization and reforms promised to creditors, such as pension or taxation.
Many questions remain unanswered, however, as the amount of aid which Greece will need to make the connection between its immediate financial needs and adoption of the new plan, which will take at least a few weeks.
The question of rescheduling of part of the Greek debt, which represents 175% of its GDP, is also asked.
The development of the Greek debt arouses strong reservations in some countries such as Germany, but is the main argument of Alexis Tsipras to be accepted by his countrymen the new austerity measures.
Greece has already received two aid plans amounting total of € 240 billion eurozone and IMF, but its economy has lost 25% of its GDP since the beginning of the crisis and unemployment stands at a quarter of the workforce.
Greece has already defaulted on repayments to the IMF and risk bankruptcy if Athens fails to repay 3.5 billion euros in Athens on 20 July.
(With writing Brussels, published by Yves Clarisse)
No comments:
Post a Comment