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Tsipras on collision course with creditors

10 June 2015 / 12:06:56  GRReporter
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Today's visit of Greek Prime Minister Alexis Tsipras in Brussels where he will meet with German Chancellor Angela Merkel, French President Francois Hollande and European Commission President Jean-Claude Juncker will take place in a tense atmosphere for him and his country, reports correspondent for the Greek daily Kathimerini Eleni Varvitsioti.

Last night's meeting of the College of Commissioners is defined as indicative of the negative attitudes towards Athens as Juncker expressed at it his great disappointment with the tactics of the Greek government by saying, "Greece has already lost its ally, the European Commission". According to a well-informed source of Kathimerini, he was adamant that it was over with the gestures of goodwill on his part. Juncker added that he had required from the rest of the creditors to insist on Greece respecting its commitments.

Early Tuesday Athens sent another seven-page proposal to the representatives of the creditors, but Brussels was negative towards it. According to European officials, it contains actions that the creditors have already rejected. Moreover, the impression is that the Greek government does not seem to have taken into consideration the proposals of creditors. "The proposals are not serious," said a European representative, adding that the new proposals of Athens in relation to the size of the budget surplus that is to be attained are surprising. Until yesterday, the creditors believed that there was a convergence of positions on this issue after the meeting of Alexis Tsipras with Jean-Claude Juncker last Wednesday.

The official position of the European Commission regarding the new proposal was expressed by its spokesman Margaritis Schinas, who said, "We are at a stage of carefully considering the proposal of the Greek government" and that the informal information from the European representatives "does not express the position of the European Commission."

In addition, the Greek side has presented nothing new about the pension system. As to its position on changing VAT rates, it is defined as vague. Its proposal also states that there will be income tax on the profits of companies to the amount of 1 billion euro and contains a detailed list of revenues that are expected as a result of measures against illegal trade in oil, cigarettes and other goods.

The remaining four pages are actually a separate proposal on how Greece's financing requirements could be met in the coming months. Its main idea is for the European Stability Mechanism to buy Greek government bonds held by the European Central Bank, which will mature in the summer. Athens proposes to use the 11 billion euro allocated to provide additional liquidity to Greek banks in case of emergency, suggesting that the European Central Bank increase the limit for bonds issued by the Greek government. The plan does not provide for a loan from the International Monetary Fund.

According to Germany's Minister of Finance Wolfgang Schaeuble, his country and Greece are still far from the possibility of reaching an agreement, and "the ball is in the field of the Greeks." He said that even during the election campaign SYRIZA had tried to play the blame game with Germany and added, "We had to be very stupid to get involved in this."

Vice-President of the European Commission Valdis Dombrovskis expressed the opinion that it would be possible to come to agreement in the coming days but, for that purpose, the Greek government should reduce tactics and should intensify essential work.

For his part, President of the Eurogroup Jeroen Dijsselbloem said yesterday, "I have heard a lot of positive things, but the Greeks have underestimated the complexity of the problem of external debt."

Finland's new Minister of Finance Alexander Stubb was the most critical, stating, "Some finance ministers are losing patience with Greece."

 

 

Tags: PoliticsGreece and the creditorsAlexis TsiprasBrusselsAgreement
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