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BRUSSELS – It’s a weekend of negotiations distressing, in a desperate attempt to save Greece and avoid the exit of the country from the euro zone, with unpredictable consequences for the monetary union. The Eurogroup, which met yesterday without finding an agreement on a new aid package to Athens, will meet again today, close to a summit of euro zone leaders. In crisis appears trust between Athens and its partners, despite the efforts that the country is doing anything to snatch new emergency loans.
The finance ministers of the euro area came together yesterday for nine hours here in Brussels to discuss the ‘analysis that the European Commission, the European Central Bank and the International Monetary Fund have made the economic policy proposals presented Thursday by the government Tsipras. At stake is a three-year plan for new aid for a total of 74 billion euro. The assessment of the three institutions has been cautiously positive, but not fully convincing.
“There is a problem of credibility and confidence” in Greece – said the night the president of the Eurogroup Jeroen Dijsselbloem, suspending the meeting – the discussion is difficult, but the work continues. ” Previously, in judging the proposals Greek said, “We have not yet: both on the substance, in terms of fiscal policy and economic reforms, both in terms of the trust, which has been deeply undermined.”
Arriving in Brussels, German Finance Minister Wolfgang Schäuble had said that negotiations between the ministers will be “exceptionally difficult”, that the Greek proposals “are not enough”, and that “the financing gap is very high ». The Deputy Finance Minister Eric Wiebes Dutch had been explicit: “Many governments (…) have serious doubts on the commitment of the greek government and its ability to adopt” the proposed reforms. Athens has already received loans to about 240 billion euro.
The German press reported yesterday a document from the Ministry of Finance in Berlin which provides two scenarios. The first is based on a very strict agreement for Greece, with the creation of a fund in which the country would pay 50 billion euro of assets as collateral. The plan provides for unspecified spending cuts automatic. The second scenario would be based instead on a temporary Grexit five years. The leak was a way to keep pressure on Athens.
From Helsinki arrives voice that Finland would be prepared to veto a third package greek. Said Edward Scicluna, the Maltese Minister of Finance: “We need to resolve an inconsistency between the new government’s proposals Tsipras, which go beyond what has been discussed so far, and the political platform with which the government was elected in January.” The rift in the government Tsipras vote in Parliament on a package of reforms in the night of Friday, raising fears that the promises can not be fulfilled.
In the 13-page document sent by the greek government to the three institutions and on “Priority actions and commitments “, Athens agrees on many of the measures proposed by the creditors on June 26 and rejected by the Greeks in a referendum on Sunday. The problem is that then the package was intended to get 7.2 billion euro from the memorandum expired in late June. Today, the greek government proposes something relatively similar for more than 70 billion in three years.
The meeting last night was to serve the governments to make a first assessment of the memorandum, and give approval for a real negotiation in view of a new program. Times are tight. Greece is in clear financial difficulty, and banks are close to collapse. In the absence of agreement to the Eurogroup of this morning, the dossier will go to the heads of state and government of the euro area that are due to meet in the afternoon always here in Brussels.
The look between yesterday and Today is all about Germany. Is not the only country to be doubtful against Greece, indeed; but it is certainly 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, the Merkel government will see if it is ready to take responsibility for a Grexit. The large countries is the only flirting with the possibility.
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