Athens from a plan by 12 billion by midnight – Il Sole 24 Ore

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This article was published on July 9, 2015 at 14:36.
The last change is the July 9, 2015 at 15:00.

ATHENS – The stalemate in the negotiations over the last five months has increased the cost of the operation needed to Greece to be able to access the third rescue. Now there is talk of 12 billion euro of spending cuts and new tax revenues. This value of the new plan of reforms that Greece must submit by tonight to international creditors, according to reports from the newspaper Kathimerini. The plan would then have a higher consistency than previously assumed, because of the deterioration of the Greek economy, which came back into recession. According to Kathimerini, the measures for 8 billion euro that Greece had budgeted for 2015 and 2016 will be increased by 2 billion euro per year, for a total of 12 billion in two years. For Eikos, the government greek estimate for year recession equal to about 3%, compared with the expected growth of 0.5%, frustrated by months of uncertainty and for nearly two weeks of measures for the control of capital. Il Sole 24 ore had collected estimates a loss of 2% even in case of victory of the yes.

Meanwhile, the premier Tsipras did have the floor to representatives of To Potami, Nea Dimokratia and PASOK, the three opposition parties, pro-European, before handing it to international creditors.
To help the Greeks are the French. Alpine is a team of experts was sent to Athens to help the Government to draw up a list of reforms to be proposed to international creditors. The Greek press reports, citing information from the Guardian. “Officials Greek – says the British newspaper – report that Paris has sent a team of technocrats to help the Minister of Finance Euclid Tsakalotos to write a new proposal, to make it as believable as possible.”

The Bundesbank did not fail to hear her moaning. “In Greece, the doubts about the solvency of banks are legitimate and are increasing day by day but has to be perfectly clear to everyone that the responsibility for any decision on the transfer of resources” in Athens’ up to the government greek and the countries that provide assistance and not the European Central Bank. ” He said the president of the Bundesbank, Jens Weidmann.
Even the left-wing Syriza intervened previously, but today his vetoes are less worrying after the referendum result. Greece is trying to reach an agreement with international creditors but does not want a “third memorandum that will bring severe austerity, suffering and hardship for the people greek”, he said today speaking to reporters Energy Minister greek Panayiotis Lafazanis, leader of ‘radical wing of the party. “We know that at this point all options are complex,” said Lafazanis, one of the supporters of the “hard line” of the government Syriza. “But the worst of these, the most debilitating, humiliating and intolerable would be an agreement that would indicate the yield, the plundering and the subjugation of the country and its people. This is a choice that we will never make. ” Lafazanis also said that Greece has alternative options to a new agreement for the bailout with the European Commission, the European Central Bank and the International Monetary Fund, stressing that the country “has no gun pointed at his head.”

It’s a race against time. The greek government has formally requested the aid ESM, the permanent eurozone rescue fund, and has set in motion procedures for a third economic rescue financial production will quite long. The Athens government has put forward Wednesday a formal request, a three-year loan the amount of which is officially unknown, but which by many is estimated at 50 billion.

The following next steps: under the treaty ESM , countries that want help from the permanent bailout fund must pay the request to the President of the Council of Governors of the ESM, Jeroen Dijsselbloem (who is also president of the Eurogroup), as did Athens Wednesday. Dijsselbloem instructs the European Commission, in coordination with the ECB, to make a technical assessment of the economic situation of the country. The two institutions must examine concretely the existence of a risk to the financial stability of the eurozone, the sustainability of public debt and the actual or potential financing needs of the requesting country.

On the basis of the request and the evaluation, the Board of Governors of the ESM, which is made up of finance ministers of the euro zone countries, may decide to grant aid to the country. If it so decides, it will ask the European Commission dealing with the EU country concerned, in this case Greece, and in coordination with the ECB and, where possible with the IMF, a memorandum of understanding setting out precisely the conditions linked to the rescue. At that point, the Commission will sign the Memorandum on behalf of the ESM, and the Board of Directors, composed of the heads of the Treasury of the member countries of the Eurozone and appointed by the Board of Governors will approve the agreement.

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