Eurogroup, half Understanding on Greece. New austerity but cutting debt – The Republic

MILAN – New gray smoke about saving the Greece . But an agreement to release aid to the country seems – at least in words – within reach. Dall ‘ Eurogroup today in Amsterdam, the president Jeroen Dijsselbloem spoke of “progress on many fronts.” In particular, it would be a possible solution to resolve friction with the national Monetary Fund. Athens would guarantee the agreed reforms, and could accept a new package of budget cuts to be 3 billion, to be implemented if they are not achieved the budgetary targets, explained Dijsselbloem. In return, the lenders could give the green light to tight deadlines to plan for a debt cut, reviewing deadlines and rates. Finance ministers would give mandate to put on the table the possible options already Thursday.

The basis for a final agreement, in fact, they seem solid. The parties would find a square in the last hours on the most thorny issues such as tax reform, social security and the non-performing loans. A broad compromise was also reached on the issue of the budgetary targets, the node that has so far divided Brussels and the International Monetary Fund on the future of the loans to 86 billion plan. Washington is convinced that – in the absence of a clear cut debt – the targets set by the cartel are unrealistic. And his pressure would convince both the EU that the Parthenon to soften their positions: the Greek government could put pen to paper and approve in parliament new measures as substitutes for 3 billion – in addition to the 5.4 already budgeted – to remit the Hellenic accounts in order if it had reached the primary surplus of 3.5% expected in 2018. the Eurogroup on Thursday instead begin now to examine a plan for restructuring the debt. Alexis Tsipras will then have to digest all of its majority in the classroom, as a scalp bringing the agreement to reduce the exposure of 311 billion. The ok must arrive by July, however, the month in which they will come to maturity 3.5 billion debt to the ECB. No off the new tranche of loans, Athens would return to the brink of default.

The Eurogroup is only the first round of this new round of negotiations. The Greek Government, concerned by the push and pull between Brussels and Washington, has decided to keep going its own way and has tabled in Parliament the new reforms of the tax and pensions without first having agreed with the creditors. The vote is scheduled for early May and there is therefore time for any running corrections if you find understanding with the former Troika. The bailout of Athens, for that matter, it is in everyone’s interest. The country is managing with great difficulty the complex issue of migrants. Over 55 thousand refugees are stuck in Greece in often poor and the Commission has just allocated 700 million over three years to help the executive to deal with the emergency. The other risk is related to the referendum in Britain. If Brexit, fear in many, the risk of Grexit would return topical. And so it would be much better able to buffer the crisis before London goes to the polls.

Topics:

Greece

Eurogroup

Moscovici

Djisselbloem

Starring:

alexis Tsipras