Uncertainty surrounding the negotiations on Greece to the Eurogroup – The Obs

Julien Ponthus and Philip Blenkinsop

BRUSSELS (Reuters) – Finance ministers from the euro area gathered Saturday in Brussels to discuss the reform plan submitted by Greece in order to obtain a new aid plan, a crucial meeting to maintain the countries in the currency bloc but whose outcome is uncertain.

The optimism and voluntarism displayed by France on this file slice indeed with the skepticism of many capitals in whose sight the government’s credibility Alexis Tsipras was broken during the long negotiations.

“The confidence has been destroyed in an incredible way in recent months,” said the German Finance Minister, Wolfgang Schäuble, on his arrival at the Eurogroup meeting.

The latest proposals from the Greek government, he still felt, are far from adequate for the granting of a third aid plan in Athens. Experts from the European Commission, the European Central Bank (ECB) and International Monetary Fund have yet given a favorable opinion first.

They amounted to € 82 billion additional financial needs Greece to meet its obligations.

The Greek prime minister, Alexis Tsipras, got the early hours of Saturday, Parliament’s support for the reform program it proposes to implement in exchange a loan of 53.5 billion euros over the next three years the European Stability Mechanism (ESM).

While Greek banks are closed and completely dependent on emergency liquidity provided by the ECB, the Tsipras plan is seen as the last chance to avoid the financial and economic collapse of the country.

Francois Hollande, who has invested personally to bring the negotiations, was hailed Friday reform package tabled by Greece, which Paris has provided technical and policy assistance for their development.

“A HYPHEN”

“France (… ) is a hyphen and we will play this role as a bridge to the end to make our contribution to a success that is essential for all, “said the finance minister, Michel Sapin, just before the start of work of the Eurogroup. The discussion “will (…) demanding because trust is a key element of the agreement, if we want a global agreement and a lasting agreement,” he added.

Some European leaders, even critical vis-a-vis Greece, considered Friday that a deal was likely Saturday, but the uncertainty seems to have regained the spirits. A source, who said Friday was virtually certain that an agreement would be found confided late morning no longer be safe, at four in the Eurogroup meeting.

On his arrival in Brussels The Eurogroup President, Jeroen Dijsselbloem, said he expected to “difficult” negotiations between the ministers favorable to an agreement with Greece and those who require additional guarantees.

The discussions, which shall cover a short-term aid to the junction between the immediate needs of Greece and the adoption of the new plan ahead long and the final press conference of the Eurogroup was provisionally set at 22:00.

Jeroen Dijsselbloem warned that the issue of rescheduling of part of the Greek debt, which represents 175% of its gross domestic product (GDP) could not be addressed due to time constraints.

The development of the Greek debt arouses strong resistance in countries like Germany, but is the main argument of Alexis Tsipras to be accepted by his countrymen the new austerity measures.

Failing agreement Saturday that would be the Summit of Heads of State and Government scheduled Sunday to unblock the situation.

(With Robert-Jan Bartunek and Andreas Rinke and China Labbé in Paris edited by Tangi Salaün and Gilles Trequesser)