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This article was published June 27, 2015 at 14:53.
The last change is the 27 June 2015 at 17:01.
The Eurogroup of finance ministers rejected the request by Greece to grant a extension of the program of aid to the referendum announced by the Greeks on July 5. This was reported by France Presse quoted sources close to the matter.
BRUSSELS – The finance ministers of the euro area have come together this afternoon here in Brussels for the fifth time in 10 days. Theme of the discussions: the future of Greece, and especially in the euro zone. In light of the unexpected decision of the government Tsipras to hold a referendum on the latest economic proposals of creditors, many ministers have explained that on the table now, there are measures to be taken to better address the now probable bankruptcy of Greece. Capital controls are at the gate.
“I was very negatively surprised by the choice of the greek government – said the president of the Eurogroup Jeroen Dijsselbloem beginning of the ministerial meeting -. It is a very sad decision because it was closed the door to new negotiations (…) We will listen to what he has to say our colleague, Finance Minister Yanis Varoufakis, and discuss the consequences “. The ministerial meeting was convened Thursday in the hope that the parties could reach an agreement at the last minute.
Instead, the decision to hold a referendum, in the night between Friday and Saturday, has upset programs, especially as the greek government has suggested to the Greeks to reject proposals to creditors. Arriving here in Brussels at the headquarters of the European Council, ministers were clearly shaken by an unexpected decision. Said German Finance Minister Wolfgang Schäuble: “We had been invited to find an agreement. Now that Greece has left the negotiating table, there’s nothing to talk about except for the consequences of their act. “
On the table for weeks there was an exchange between new economic reforms on the one hand and new financial aid on the other. Between the lines there was also the idea of an extension of the current program, which expires Tuesday. Before the meeting, Varoufakis said it will ask an extension anyway. But on this issue, many ministers were net. Schäuble said: “It ”s impossible to imagine an extension of the memorandum in the absence of negotiations.” The same opinion, the Finnish Alexander Stubb: “There is a consensus among us that the extension is not possible.” The same Stubb admitted that at this point “Plan B is rapidly turning into Plan A ‘.
Behind the choice of a referendum there are probably many reasons. Aware as partners of the euro area are concerned about the risk of political instability, Prime Minister Alexis Tsipras wanted with this move groped to wrest new concessions, while the country is on the brink of financial abyss. For now, without success.
The tone and words today here in Brussels are of resentment, mistrust and even anger. Many European politicians, without saying so explicitly, fear they will be facing a blackmail by Greek. Others in their hearts if you chiederano probably did not cause this situation, contributing to a long negotiation, difficult, which made the atmosphere between the parties unbreathable. In some ways the decline of emblée an extension of the program, the Eurogroup would respond to blackmail greek with another blackmail.
Gear up before the emergency situation caused by the likely end of the memorandum and the probable failure to repay a loan of 1.6 billion euro Tuesday, means probably introduce capital controls to prevent new leaks of money from the country. After the announcement of the next referendum, many Greeks have withdrawn money from cash dispensers. The ministers will also have to imagine possible humanitarian aid, in the event of a liquidity crisis.
So far, the ECB has supported the banking sector greek with emergency loans, but at the cost of deep divisions within ‘ Procedure of the Board of Directors. The institution will continue to lend money to banks without a program? Difficult. Germany, meanwhile, come very sharp criticism. Horst Seehofer, chairman of the Bavarian Christian Socialists, said: “The greek government in recent weeks has given us a circus. We have to finish with the circus as soon as possible. “
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