What does Greece expects today fromthe Eurogroup leaders meeting in Brussels? Athens’ expectations refer to three crucial things: Repayment extension for the €110 billion bailout, Decrease of borrowing interest rates and Buyback of its debt. Practically there has been an EU acceptance on the repayment extension and cuts in the interest rates. The question is: under which conditions?
Yesterday German Chancellor Angela Merkel, the key player in forming the new EU policy, put her one negotiation card on the table. “Sell state assets” she said. However Greeks feel hurt in their national pride if they have to sell their beatiful countryside, the olive hains, the deep blue waves of the Aegean Sea. Last month Prime Minister George Papandreou had even threaten the IMF/EU/ECB-Troika to pass a law forbidding the sale of state assets – nothing has happened so far – Greece insist on a kind of 49-years leasing of state assets and not selling.
According to the Memorandum of Understanding, Greece has to get together EURO 50 billion until 2015 and thus through privatization. This amount was allegedly the bargain card by the Troika in order to agree on repayment extension and interest rates cuts. By the way, I was reading yesterday on German websites that the new interest rates for Greece could be 4,5-4,8%.
Of course, the biggest question of the issue is: Does Greece have state assets worth 50 billion euros??? There are quite some Greeks doubting this… Is the sale off of our picturesque Greek islands inevitable?
The issue of “Buyback the debt” has been rejected by Angela Merkel. So George Papandreou has to negotiate hard to achieve good contiions at least for the other two issues.
Thank God, Ireland created new facts when the Irish kicked form power the government that had negotiated their own MoU. Their new government wants re-negotiation of the MoU terms and conditions and cuts in interest rates. That comes closer to Papandreou’s idea of a comprehensive solution for the European debt crisis.
Lets’ wait and see. However today’s meeting will lay the foundation stones for the EU summit agreement on March 24-25.
Read also: Greek PM: We don’t sell our islands! , Greek PM: “We do not sell our soil!” – Demands Respect and Germany’s Angela Merkel: Greece can’t solve its problems in three years
