Thursday, June 18, 2015

Eurogroup, nothing done about Greece. Summit political emergency … – Il Sole 24 Ore

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This article was published June 18, 2015 at 19:44.
The last change is the 18 June 2015 at 22:56.

“No deal at #Eurogroup,” no agreement Eurogroup meeting in Luxembourg, on the completion of the second program of aid to Greece with the last tranche of 7.2 billion. He immediately announced on Twitter the European Commission Vice President Valdis Dombrovskis, responsible for the Euro. According to Dombrovskis, it is “a strong signal for Greece to engage seriously in negotiations.” The Eurogroup, the Commission Vice-President concluded, “remains ready to riconvocarsi at any time.”

The president of the Eurogroup, the Dutch Finance Minister Jeroen Dijselbloem said that were done “too little progress.” An agreement can still be reached, but must be “credible,” but the time (here the key dates, ed) is about to expire, since any agreement should first be ratified by some parliaments including the German one. In any case, Dijsselbloem explained, “it is unthinkable that there is time” helpful to pay the last tranche of 7.2 billion “by the end of June.” You will then need to further extend the time for disbursement. “The time is not enough to reach an agreement, follow parliamentary procedures, and make the technical steps needed to make the payment before the end of the month.”

And after Eurogroup President of the European Council, Donald Tusk, has convened an extraordinary summit limited to the eurozone countries to Greece on Monday, June 22 to 19. “In the light of the outcome of today’s meeting Eurogroup – wrote in a note Tusk – I decided to call the Eurosummit for Monday 22 to 19. It is time to urgently discuss the situation of Greece at the highest political level. ” In short, will be the Heads of State and Government to decide, with the finance ministers probably secondary.

Yet another black smoke was expected after the confrontation in recent days. And there were no extraordinary events or at least sufficient to allow an outcome different from what was anticipated. This is despite the greek Minister of Finance, Yanis Varoufakis, he has presented to colleagues new proposals for the reform plan in discussion with creditors. The new plan, according to a government source greek, would be contained in a five-page document.

Varoufakis raised the possibility of the ECB making repayments from the Fund to finance salvastati ESM (European Stability Mechanism). In practice it would buy back, thanks to an ESM loan, the Greek government bonds purchased dall’Eurotower with the Securities market program (SMP). Once repurchased securities, Greece would qualify for use of Quantitative easing by the ECB, which is now excluded. The ESM loans would have the advantage of having a very long maturity, up to 30 years, with an interest rate very low, at 1.5%. The total amount of bonds in the hands of the ECB’s 27 billion.

“There’s not much time, but enough to find a solution that gives common benefits. All political leaders – warned Varoufakis – have a responsibility to find a solution. ” Today Greece “has sent a strong message with a comprehensive proposal that, if accepted, will put an end to the drama greek” added Varoufakis, disputing Dijsselbloem: “Unfortunately, the president of the Eurogroup chose to focus only on our responsibilities and not on those of all. ”

But an “appeal” to the government greek him to return “seriously” at the negotiating table, “to engage constructively and accept reasonable compromises to avoid a catastrophic fate” was launched by the European Commissioner Pierre Moscovici in behalf of the entire executive of Brussels at the end of the Euro. “We have to make decisions in the coming days, there is no time,” he added.

And the director of the International Monetary Fund, Christine Lagarde, has reached a jab to Greece: the negotiations, he said in the press conference after the Eurogroup “require urgently to re-establish dialogue with adults.”

The euro is back to below 1.14 against the dollar after the Eurogroup. In the evening the single currency, which during the session had touched $ 1.1435, stood at 1.1358 share.



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