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This entry was posted on July 12, 2015 at 14:34.
The last change is the July 13, 2015 at 05:10.
The reference to the temporary suspension of Greece from the euro area “is no longer on the table “This is what we learn from EU sources
BRUSSELS – After another five hours of negotiations, after nine yesterday, the finance ministers of the euro area have interrupted their meeting, postponing Heads of state and government of the monetary union any decision on the future of Greece in Europe. The leaders met in mid-afternoon here in Brussels in an extraordinary summit particularly important. On the table, there is a dramatic possible Greek exit from the euro zone. The summit was still ongoing in the late evening in what seemed like the umpteenth marathon night.
“We have worked so far – said the chairman of the Eurogroup Jeroen Dijsselbloem, at the end of the meeting and prior to attending the Summit of Heads of State and Government – There are important outstanding issues. Now we will tell the leaders. ” Most of the Dutch politician did not want to say. Ministers have negotiated unsuccessfully a draft declaration which among other things would list the specific measures that the government Tsipras would have to meet in order to get new financial aid.
On Thursday, the government Tsipras has presented a series of proposals to its creditors, demanding new financial aid for three years. The three credit institutions – the European Commission, the IMF and the European Central Bank – have presented their assessment. The analysis submitted to European governments Friday night was cautiously positive, but not fully convincing. Estimate the financial needs of Greece for the next three years to 74 billion euro.
Finance ministers gathered for 14 hours – nine hours yesterday and five more today – to decide whether open new negotiations in view of a third memorandum to allow Greece to survive in the euro area. How explained Dijsselbloem, the ministers did not reach an agreement. In a draft declaration negotiated by the Eurogroup, which has remained just a draft, it is stated that in order to give their blessing to the talks the ministers for the approval of a series of measures by Wednesday, July 15.
These include: measures on VAT; new measures early to ensure the sustainability of the pension system, the adoption of a code of civil procedure, the full independence dell’Elstat, namely the greek office of Statistics; full respect of the Fiscal Compact and the birth of an independent fiscal council; the adoption of new European rules on the management of banking crises. Only overcome these rocks, the Eurogroup it seemed ready to open negotiations on new loans.
As explained Dijsselbloem, the finance ministers were not able to solve all the. During the negotiation of this morning, we discussed whether it would include in the statement the hypothesis of a possible temporary exit of Greece from the euro zone. “At one point, the draft statement of the ministers was full of uncertainties, double solutions,” says a diplomat. Too many ambiguities in order to be accepted by all governments.
Among the cases discussed by the Ministers of Finance also the German idea of a fund of 50 billion euro in which Greece could transfer activities economic guarantee of financial support. The situation is particularly difficult. The more you ask for government efforts to Tsipras, the more they risk divisions within the majority that supports the government and especially the promises will prove difficult to meet. The circle is vicious.
In these two days, you have faced different sensitivities. No country wants in his heart, the exit of Greece from the euro zone. Some believe that an agreement with Greece should be done at all costs, such as France. Others are ready to close quickly, but they are very concerned about the lack of reliability of Greece. Still others resent the way the government Tsipras has negotiated in recent months, and want to impose particularly stringent conditions to the country.
Germany is not the only country to be doubtful of Greece, in fact; but is the most important. Berlin is torn between the awareness of the reputational damage caused by a Grexit and the feeling that the permanence of the country in the euro undermines the credibility of the union. In deciding at the Summit of the euro area are currently under way, the Merkel government will have to figure out if it’s ready to take responsibility for a Grexit. Of big government is the only flirted with this possibility.
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