The agreement Monday found difficult to bring to Greece a new financial support in exchange for reforms is “hard” for both the Greek population than for other countries, said on Friday, 17 July German Chancellor Angela Merkel before the members of the Bundestag. The Chancellor is trying to convince MPs to allow the government of Angela Merkel to participate in negotiations.
“There is no doubt that the result of Monday morning is hard for people in Greece, but also for others,” said Merkel, trying to convince the German Parliament to give the green light the negotiation of a third aid package. The Chancellor stressed that a side agreement, the result of a “last attempt” to negotiations, called “unprecedented solidarity” for some and “unprecedented demands” for Greece.
On the eve of the vote, Merkel and Wolfgang Schäuble called on Thursday, July 16 Conservative MPs to approve the agreement on a third plan of aid to Greece. According to participants in the meeting of the conservative parliamentary group (CDU-CSU), Merkel said she was “absolutely convinced” that the government should take the path of negotiations. However, for Germany, the issue of debt reduction for Greece, which reached 180% of GDP remains particularly sensitive.
Strong support from the ECB
IMF recently held Greek debt “totally unsustainable” and urged Europeans to massively reduce by rescheduling or partial erasure, a hard-fought option by Germany. “A genuine debt cancellation is incompatible with belonging to the monetary union,” Wolfgang Schaeuble reiterated Thursday.
The US Treasury Secretary Jacob Lew, visiting France and Germany has highlighted him as “the importance of reaching a solution on the debt sustainability (Greece, ed) in the coming negotiations.” Following the vote on the night of Wednesday to Thursday the Greek parliament, which set in motion the reforms as a token of goodwill and the price of strong political tensions, Athens has received the strong support of the President of the Bank European Central (ECB) Mario Draghi to find a way to lighten its debt, a necessity “indisputable”.
Reopening banks Monday
In the evening, the Greek government announced reopening on Monday banks, closed since June 29 However, according to Deputy Finance Minister Dimitris Mardas, withdrawals will be limited to 60 euros per day, while all other operations will once again take place. The Greek Parliament approved four reforms, including a rise in VAT in accordance with the requirements of creditors, but at the cost of many defections in the ranks of the radical left Syriza training of Prime Minister Alexis Tsipras.
Satisfied, the finance ministers of the euro area have endorsed the opening of formal negotiations for a third aid package of over 80 billion euros, the principle of which was approved Monday. And after the lifting of the London reluctance on the use of Community funds of the 28 EU countries, Athens should be able to get money in the next few days to meet current expenses and a big refund 4.2 billion euros at the ECB on Monday.
To ensure, at least in part, that “bridge” financial, the European Commission proposed a loan of seven billion euros drawn from a fund Community. The British Finance Minister George Osborne, who did not want British taxpayers spend at checkout to fix the problems of the single currency bloc, has announced an agreement with the Commission Thursday night. During the day the Governing Council of the European Central Bank (ECB), in regular meeting in Frankfurt, raised 900 million euro emergency loan limits ELA lifeline of Greek banks. “The conditions for a recovery of ELA are reunited,” said Mario Draghi.
Vote for new reforms desired by creditors
The Greek Parliament is to vote this week next other promised reforms, and the ECB should further inflate a little volumes each ELA advanced of its kind, Holger Schmieding noted, Berenberg analyst, citing “carrot” held by Mario Draghi. However, there remain “questions about the willingness and ability (the Greek government) to implement” the promised reforms, said Mario Draghi, for which “it will be the responsibility of the Greek government” to lift those doubts.
In Athens, Alexis Tsipras appeared weakened by the loss of his parliamentary majority. Citing a “tear”, the Liberal Greek daily Katherimini expected a cabinet reshuffle. But Alexis Tsipras has merely criticize Thursday dissidents within their radical leftist party Syriza without mention sanctions. “The choice of the 32 MPs of the parliamentary group (Syriza) contradicts the principles of friendship and solidarity in a critical time,” and the party spell “bruised,” said the Prime Minister during a government meeting , remarks quoted by a government source.
(with AFP)
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