A crucial meeting between Greek prime Minister Alexis Tsipras and the country’s main lenders is scheduled to take place today, Thursday, at 7 pm Brussels time. Tsipras will participate in a meeting with German Chancellor Angela Merkel, French President Francois Hollande, EU Commission President Jean Claude Juncker, ECB head Mario Draghi, Eurogroup head Jeroen Dijsselbloem and EC Vice President Donald Tusk. The meeting is taking place at the side of the EU Leaders Summit on March 19-20, 2015.
The meeting is going to take place amid a tense atmosphere between the Greek government and the lenders with both sides insisting on diametrically opposite solutions to the Greek debt problem.
The Greek side is reportedly going to the meeting seeking a political solution and a lifting of the “asphyxiating” ECB policy. Among others Greece wants to be able to issue more T-bills.
The lenders “see” a fiscal gap of 2 billion euro for 2015 and want further austerity measures. Only then they would be willing to pour financial aid to Greece, that is the 7.5 billion euro last tranche of the bailout program. They are adamant and they also threaten with Grexit, even though at the same time they pledge to keep Greece in the eurozone.
The debt-ridden country could soon run out of money and be unable to pay its lenders.
The official creditors and EU-partners have increased pressure during the last days urging Greece to “stick to the agreements of the previous governments” and even vetoed measures to tackle the humanitarian crisis.
The Greek Parliament approved the humanitarian crisis bill with an overwhelming majority, with lawmakers of government and opposition parties to vote in favor.
Merkel gives the signal
The most important player in this game is Germany and Chancellor Angela Merkel sent the message to Greece that there would be no solution to the Greek problem at the meeting tonight. “Neither on Monday,” Merkel said at the German Parliament, with reference to the one-to one meeting with Tsipras in Berlin on upcoming Monday. “It is up to the Eurogroup to take such decisions,” Merkel stressed, while everybody knows that it is Germany that rules and governs the Eurozone.
Lost in misunderstanding & aggressive statements
Both Greece and the lenders refer to the Eurogroup agreement of 2o. February, however both sides seem to interpret the agreement in a different way.
Greece says that the agreement gave it time to proceed with several new reforms focusing on increasing state revenues.
The lenders claim that the Eurogroup agreement was focusing on ‘strict austerity.”
Greece pledges for a “honorable compromise” which means that both sides should take a step back.
So, tonight, maybe both sides should focus on clearing the misunderstandings and misinterpretation of the “agreement”, “the commitments” and “the reforms” at first place.
They could also agree to refrain from provocative statements of the recent days, statements that undermine all efforts for a solution and a restore the trust.
Important statements of the last hours:
Angela Merkel: Greece must stick to the bailout agreement for further cutting of government expenditure in order to get financial aid.
Barack Obama: a realistic solution that will allow Greece to return to growth.
Pierre Moscovici: “Europe has an overwhelming will to keep Greece in the eurozone, but we won’t keep Greece in the eurozone at any price.”
sources: NewYorkTimes, TheLocal.de, NewsIt.gr, BusinessTimes, and others
Huh? How prophetic!
Tsipras should hold his position; all he’s really asking for is humanitarian help for his people. He should be supported to help his people lift their heads once more and also to get his country back on its feet. Then all loans can be paid.
He must know that if he holds his position, it won’t be long before many other countries will support him and fight for the same…
Good luck to him!!!!!! We’re beside him!!!!
Measures to handle the humanitarian costs should never under any circumstances be subject to any austerity measures, ever.
No matter what financial obligations a country has.
According to Financial Times, The ECB is rather considering curbing the amount of Greek T-bills (short-term debt) it accepts as collateral for fresh funds. Because the sole buyer of these T-bills are Greek banks, then curbing the amount would squeeze Greek banks among the bankrun and equity price falls.
The ECB now accepts €3.5 billion of Greek T-bills as collateral. Formerly knwon “Troika” will accept €15 billion.
For FT-readers, here is the link:
http://www.ft.com/intl/cms/s/0/40d46d28-ce23-11e4-9712-00144feab7de.html
let’s see if it indeed happens. there was talk about it …ehm… 2 days after Draghi announced the QE.
This is interesting: http://norberthaering.de/index.php/de/27-german/news/310-brief-obama-2#weiterlesen
Pressure of Obama on the background and German media do’nt tell about it.
lol, I bet they won’t tell !