The finance ministers of the euro area entered Saturday night in a final sprint of negotiations for Greece new guarantees in terms of the reforms it promised to implement in exchange for its maintenance in the euro area.
Special Envoy in Brussels
The Eurogroup should validate or not the recent reform proposals of Greece in exchange for a new aid plan that can save it from bankruptcy, continued Saturday night at 22 pm, about eight hours after starting. The most intransigent ministers from among the eighteen eurozone facing the Greek Minister Euclid Tsakalatos exerted maximum pressure to obtain accurate measurements and guarantees in exchange for further financial assistance. According to a European source, Germany embodied by the inflexible Wolfgang Schäuble was resting on his hard line by Finland and Slovakia. France, including Minister Michel Sapin has claimed the role of “link” would be supported by a dozen countries, the remaining five or six states adopting a more neutral position according to a source.
A German discussion paper released by the German newspaper Frankfurter Allgemeine Sonntagzeitung has caused turmoil in the Lex building the European Council, the seat of discussions and on social networks. According to this text, authenticated by European sources from news agencies, but that has not been presented to the Eurogroup, Berlin suggests a provisional Grexit … five. A new concept that is seen by some diplomats as an additional means of pressure against the government Tsipras.
Finland and veto
Another potential crash seemed to come from Helsinki by the Finnish media. The Finnish Parliament has to give its green light to new negotiations on a third aid package. But a majority of Finnish parliamentarians – and the government – would be hostile to any new payment. Helsinki would be in a position to veto in the ESM (European Stability Mechanism), the organization that would pay the new envelope. But there is a way around this veto, it was claimed in the corridors in Brussels. In an emergency, a majority of 85% of MES shareholders (the states of the euro area) would be enough to win the day.
“Greece is committed,” says the European diplomat close to the negotiations referred to above, “to immediately pass legislation on three areas considered essential by creditors: the VAT increases, the lengthening of the retirement age and the creation of an independent tax authority “.
A budget of € 74 billion
At the heart of the discussions also the envelope of the third aid package that would be allowed under the umbrella of the ESM (European Stability Mechanism) in exchange for reforms. A budget of 74 billion euros over three years on the table. It includes 16 billion euros from the IMF, which was provided for in the previous aid plan that ran until March 2016 but which are blocked by a lack of agreement and also from the failure to pay Greece vis-à-vis the Fund, June 30 This new massive aid consisting of a loan of MY low interest rate and distant future, would allow Athens to pay its most immediate deadlines, the IMF and the ECB. Part of this amount (15 to 25 billion euros according to sources) would be devoted to the recapitalization of Greek banks many of which are likely on the verge of insolvency in light of bankruptcy.
L The aim of Ministers on Saturday night was to move forward on many points to allow the heads of state expected Sunday in Brussels to put the end to the agreement. Or see the disagreement, which would open the way to inevitable voice Grexit, the output of the euro. If approved, it would take … a new Eurogroup next week dedicated to the new aid plan.
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