The Eurogroup most obviously returned to blackmail policy after it officially admitted Greece has met 108 out of 110 prior actions. It froze the disbursement of 5.7 billion euros at the meeting on Monday. Furthermore, the finance ministers of the eurozone got to know the hidden personality side of Euclid Tsakalotos. A finance minister boiling in anger. Reason for Tsakalotos’ outburst was the pressure by European Central Bank head, Mario Draghi, on electronic actions procedures and on Greek bond issuance where the yields instead of going down as expected they actually went up.
Was Draghi the reason that the Eurogroup on Monday failed to give the green light for the disbursement of 5.7 billion euros? Although Greece has fulfilled 108 out of 110 prior actions.
Although auctions go exclusively ‘electronically’ on Feb 21st, while e-auctions for debts to the state will start on May 1st.
Tensions between Tsakalotos and Draghi reportedly rose when the two men began to discuss about the e-auctions. Draghi sked for further clarification on the legal framework and the effectiveness of auctions across Greece. And this was the point that angered the Greek finance minister who started to speak louder than he usually does A cross-talk in sharp tune followed and Draghi left the hall for short time.
The self-appointed eurozone chiefs came to the conclusion that Greece has still to implement the two remaining so-called reforms, that is the electronic foreclosure procedures and progress on the privatization project of the old Athens Airport Ellinikon.
Two out of 110.
The result was: no prior actions, no money, as the Eurogroup said in a statement after the meeting on Monday.
Eurogroup meeting in regular format
Greece: economic adjustment programme
The Eurogroup was informed of the further progress achieved by Greece in implementing the remaining prior actions under the third review of the programme. Their fulfilment is a precondition for the disbursement of the next tranche of financial assistance available under the programme from the European Stability Mechanism.
Top Eurozone officials tweeted
Good news on #Greece. They acted on all agreed measures & #eurogroup is now turning to the final review of the #ESM programme. The reform agenda should outlive the programme
— Mário Centeno (@mariofcenteno) February 19, 2018
Very significant progress made in #Greece, 99% of prior actions done: 108/110. Confident remaining two will be done in time for next #Eurogroup, allowing decision to be taken on disbursement.
— Pierre Moscovici (@pierremoscovici) February 19, 2018
Teams will return to Athens to start discussions next Monday on the fourth and final review. The aim of the mission will be to agree plans for the completion of all the required actions by May, so that the 21 June #Eurogroup can take the necessary decisions.
— Pierre Moscovici (@pierremoscovici) February 19, 2018
ESM head, Klaus Regling, said that Greece won’t get loan tranche before late March.
PS Was the e-auctions really the reason for freezing the bailout tranche, or it was some isolated and bitterly obsessed with Greece man in Berlin desperately trying a last trip up?
I feel a Grexit on the cards
If there was an agreement that 102 prior actions have to be completed for the money to be paid, of course 102 prior actions have to be achieved. If the money was paid out now, next time it would be 60 of 80, then 30 of 60 and in the end none at all. Or would Greece, after having completed all prior actions, accept if the creditors said, btw, you only get half the agreed money, we have other priorities now?