BRUSSELS – After the break between the greek prime minister, Alexis Tsipras, and the President of the Commission, Jean-Claude Juncker, it fell to Angela Merkel to hold open the hope of a partial compromise which would allow Athens to avoid default and the risk of an exit from the single currency.
“The goal is that we want to keep Greece in the euro area,” the German Chancellor said yesterday before a mini-summit in the evening with Tsipras and the French President, François Hollande, on the sidelines of a summit between the EU and Latin America in Over in Brussels. “If there is a will, it can be done”, said Merkel. Shortly after the agency Bloomberg reported what should be the German plan to allow Greece to meet the forthcoming financial, beginning with the $ 1.6 billion that has to repay the IMF on June 30: unlock a tranche of aid, in exchange for a greater reform adopted by the government greek. Put with their backs to the wall by its European partners, Tsipras would give up one of the main demands of international creditors. “Greece is ready to accept a primary surplus of 1% of GDP,” they have informed sources in Athens. Meanwhile, Standard & amp; Poor’s cut Greece’s rating to CCC from CCC + and warned that without an agreement with creditors Athens danger of bankruptcy in 12 months.
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Everything is still in the balance, between contradictory statements, denials and domestic disputes. In Germany, according to the Parliamentary Social Democrat Carsten Schneider, Merkel would take away his finance minister, Wolfgang Schaeuble, a mandate to negotiate on Greece. In Athens, the left Syriza asks Tsipras to break with the creditors. The details of the measures that Athens must take have yet to be discussed at the technical level. To unlock, aid the Eurogroup has to find unanimity in its meeting next week. Moreover, Merkel said that “work with the three institutions’ representatives in the former Troika – the IMF, European Central Bank and the Commission – must continue.” But suddenly the atmosphere was serene after the openings of the Chancellor, despite the harsh judgment that had been expressed by the Commission on proposals made by Athens to break the deadlock.
“The latest proposals do not reflect the by Alexis Tsipras discussions with the President of the Commission, “she explained in the morning Juncker’s spokesman, announcing that there would be no meeting with the prime minister in Athens,” the ball is in greek. ” Then, during the afternoon, came the turning point. After a brief meeting, Juncker and Tsipras have decided to meet again for a working meeting during the day today. According to the Commissioner for Economic Affairs, Pierre Moscovici, a stepping stone “it is closer than ever.” For the president of the Eurogroup, Jeroen Dijsselbloem, they remain to be resolved “only a few issues.” But the government Tispras must take measures that allow Greece to “go back to being financially independent.”
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The German plan would help to overcome the emergency. According to Bloomberg, Germany insists on a complete package, but would be prepared to settle for adoption in Parliament of a significant reform to thaw some of the 7.2 billion of aid assistance program. The rest could come later, when it reached an overall agreement. The greek government would be asked to extend the current program – due June 30 – other 9 months. Athens wants to use 10.9 billion of the bailout fund ESM reserved for the recapitalization of Greek banks to the European Central Bank to reimburse 7 billion of debt maturing in July and August. A Tsipras will still be asked to accept some harsh conditions, particularly on pension reform and labor market. The Commission would be ready to make concessions on minimum pensions and VAT. But need new Greek measures “equivalent in terms of budget,” he warned spokesman Juncker.
A ruling by the Council of State in Athens but threatens to complicate the negotiations: the Constitutional Court ruled Greek that pension cuts adopted in 2012 are unconstitutional. Although the courts have not demanded payment of arrears, the bill for the government Tsipras amounted to 1.5 billion. The austerity measures requested by international creditors are likely to be revised upwards to offset the effects on the budget. The ECB has instead given a little ‘breathing space to Greek banks, increasing by 2.3 billion emergency liquidity granted by the ELA program.
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