The Eurogroup is bogged down in the Greek crisis – Liberation

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The Eurogroup of the “last chance” turned sour. After nine hours of talks, the finance ministers of the eurozone failed Saturday an agreement on a new aid package for Greece. They call cover now before the heads of state and government of the countries of the euro zone take over during an extraordinary summit. In the night, while talks got bogged down, a European official, exhausted, began to lose patience: “In increasingly demanding, it goes straight to Grexit. Meanwhile, Greek banks are on the brink of bankruptcy. “

More safeguards

Nobody expected that this is a long Eurogroup quiet river. Wolfgang Schäuble, the German finance minister intractable, warned on arrival rue de la Loi, Brussels: “The discussions promise to be extremely difficult.” At the heart of the problem, “confidence” between States. It has been seriously eroded by months of negotiations usantes. Some ministers still have not digested the referendum in Greece. They want more guarantees of will to reform the government of Alexis Tsipras (some are perhaps tempted to let the situation deteriorate to a resignation of the Greek government). Specifically, Greek MPs might be called in the coming days to vote at any speed some emblematic texts, as for example the reform of pensions, to reassure those worried States and begin real negotiations with creditors.

Insufficient action plan

The plan of actions and reforms proposed Thursday, July 9 by Greece to the States of the euro area has therefore sparked wave of accession. This text yet uncannily resembled the proposals that were on the table June 26 between Greece and its creditors. The “institutions” (European Commission, IMF, European Central Bank) have also seen Friday in their evaluation that these proposals are a good basis for discussion. However, these have made their accounts. The $ 53.5 billion that request Greece to the European Stability Mechanism for the period 2015-2018 would not fill the country’s financing needs. The institutions argue instead for a loan 74-78000000000. A European source believes that “Greek attitude is positive, because they are willing to make reforms on the most sensitive issues such as VAT, retirement and the establishment of an independent fiscal authority.”

But this does not seem enough. It must be said that the sum to pay is higher than expected. France has beautiful insist that such a loan would be cheaper than a Grexit, some states are not convinced by the argument. Before lending money, they want more safeguards and even more reform proposals. “The debate is about the accuracy of Greek commitments,” said a European source.

Two major events

The discussions of the night were shaken by two major events. Alexander Stubb, the Finnish Minister of Finance, said that a priori his country did not wish to participate in a new aid plan for Greece. This could jeopardize its coalition with the anti-European True Finns party. This position was clearly stuck threads, even if the statutes of the European stability mechanism make possible aid without unanimous vote (a majority of 85% would suffice). Today, the Finnish Minister tempers this position. He says “no blocking an agreement” and think what the Greeks proposed “is not enough.”

The Another event involved the document from the German Ministry of Finance revealed by the newspaper Frankfurter Allgemeine Zeitung. In this document, the option of a temporary Grexit 5 years, accompanied by a humanitarian and a debt restructuring is mentioned. While this option has not been formally presented during the Eurogroup. She had spread at full speed on smartphones negotiators, draping a little more atmosphere between France, which opposes the Grexit, and Germany dithers, even if the position of Wolfgang Schäuble to the question is rather clear. The standoff yesterday has therefore not given. The passage of time plays against Greece, whose banking system is about to collapse. Tomorrow, the European Central Bank may decide to cut the emergency liquidity that allow the Greek banking system plod …

Today, the Heads of State and Government will continue to discuss during ‘ a peak in the finish , as could be said Alexander Stubb, whose outcome will be crucial for Greece. Yet another summit “last chance”? This time, perhaps this is true.