Brussels sees the new reform proposals of Athens initially positive. Difficult negotiations are still expected. All eyes now turn to the special meeting at the weekend.
The new Greek austerity and reform list can after a first assessment from Brussels a “good starting point” for negotiations on a third its utility for Athens. This was reported on Friday evening from circles of financiers. But there were still long and difficult debates expected. French President François Hollande described the proposals as “serious and credible”. Austrian Chancellor Werner Faymann stressed that there is the chance of an agreement. The German government was against it from no substantive review. On the markets prevailed in the face of a possible unification of confidence.
The Finance Committee of the Greek parliament approved the austerity and reform the government list on Friday night. Parliament should not vote in the night on the proposals, the Prime Minister Alexis Tsipras had submitted to international donors on the day before.
The highly indebted euro zone is about to be national bankruptcy. For nearly two weeks, the banks are closed. On Saturday the euro zone finance ministers are to decide whether the measures are sufficient to start new negotiations. The Greek government had received the 13-page paper shortly before the deadline late Thursday the EU.
debt restructuring is less in the foreground
It provides for the abolition of tax breaks for the tourism sector and the Islands and raising the retirement age to 67 years ago. Military expenditure should be reduced, state-owned enterprises privatized and tax fraud are tracked more. Many of the proposals were based on earlier papers, which were originally meant for an extension of the now expired, the second aid program for a few months, it was said from Brussels. Now it is about a third tool that should run over three years. That is a significant difference.
The question of debt and a possible debt restructuring would diminish in the foreground. The terms of the European bailout fund had already been considerably extended. Redemption and interest payments begönnen after 2020. According to the Lithuanian President Dalia Grybauskaite, the proposals are inadequate. They were based on outdated information and are “seriously adjusted” would, she said, according to the agency BNS in Vilnius. “We accept the documents submitted as Greece’s political desire to return to the negotiating table.”
In the vote in the Greek parliament was expected by a large majority. The Government had therefore a power of attorney to sign an agreement with the creditors in Brussels. Most opposition parties had declared that they would vote “yes”. However, Tsipras might lose the governing majority. Several left and right-wing deputies his coalition reject a give in the government.
special summit on Sunday
In order to avoid a government crisis that Syriza MPs should be able to vote freely without whip. The government has 162 of the 300 seats in parliament.
EU Commission chief Jean-Claude Juncker said on Friday afternoon in a conference call with IMF chief Christine Lagarde, ECB President Mario Draghi and Euro group chief Jeroen Dijsselbloem on the proposals from Athens. Nothing was known about the content of the conversation. The IMF declined to comment on the new reform and austerity proposals. Lagarde will participate according to a spokesman at the special meeting of the Euro Group on Saturday in Brussels.
After the necessary approval of the euro zone finance ministers, leaders of the 28 EU Member States will meet for an extraordinary summit on Sunday. Several parliaments of the euro zone – including the German parliament – would give its approval to the package
In many respects the Athenians letter corresponds to recent claims of creditors.. The blocked billions in aid for Athens from the second auxiliary pact expired on June 30, were not released at that time, because Athens had broken off the negotiations.
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