Saturday, May 7, 2016

Greece: Finance Minister called the Eurogroup to approve the reforms – Les Echos

Two days of the Eurogroup, on Saturday, the Greek finance minister called his peers in the eurozone to approve the reforms undertaken by his country. “Greece needs a clear statement on the measures (reforms) in progress and those to be taken, which would help the country (regain) confidence of investors and the recovery”, they did it in writing in a letter.

According to Euclid Tsakalotos, this “clear statement” of the Eurogroup should be noted that “Greece is on track,” while the Greek parliament began Saturday to consider including very unpopular pension reform. “This would help transform the vicious circle of austerity measures in a virtuous circle based on growth,” he said.



IMF Power

During Monday’s Eurogroup, the 19 finance ministers of the euro area should again consider the assessment of reforms in Greece, demanded by the EU and the IMF after international loan to the country in summer 2015. After months of discussions, these reforms have not yet received a clean bill of creditors mainly due to differences between the European Union (EU) and International monetary Fund (IMF).

According to an IMF letter to the ministers of the Eurogroup, revealed Friday by the Financial Times, Christine Lagarde put pressure on the EU to open the discussion on debt while stressing the need for a downward revision of the goal of a primary budget surplus (excluding debt service) of 3.5% of GDP for 2018, deemed “counterproductive” by the Fund and involving additional measures. The IMF even threatening not to participate in the program if the Greek debt discussion does not begin Monday.

Germany pleads for relief Greek debt

Meanwhile, the German Economy Minister Sigmar Gabriel called that Saturday, the eurozone member states to begin negotiations on relief Greek debt. He asserts that he does no logic to suppress the signs of economic recovery through new austerity measures.
The International Monetary Fund (IMF) also argues in this direction and hopes that the European partners of Greece agree on a substantial reduction of the Greek debt, according to him essential for long-term viability.

Tsakalotos holds its positions

creditors have recently called for additional measures 3.6 billion but Euclid Tsakalotos retorts “that such a package of measures can not be voted by the current government and no democratic government.”

He said that his government already agreed to take measures of 5.4 billion euros and a reform of pensions and taxation will be voted in parliament Sunday. “All evidence to conclude the evaluation of reforms and proceed with the debt relief are gathered,” he concludes

AFP Source

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