Dijsselbloem: difficult negotiations on Greek package – Financieele Dagblad (Registration)

The nineteen finance ministers of the eurozone are Saturday began a marathon meeting to decide whether Greece can remain a member of the eurozone. Government leaders are expected Sunday in Brussels to finish the job.

European Commission, ECB and IMF gave a positive opinion on the proposals made by the Greek government to get the economy back on track and be eligible for a new aid package.

unmanageable

They find that the negotiations on Greek aid request to begin, because the risks financial stability in Greece and the Eurozone are otherwise uncontrollable.

But within the Eurogroup is showing signs of separation. On one side are countries like France and Italy that negotiations on a third package based on the positive assessment indeed want a chance. On the other hand, a hard core around Germany which want more assurance that it will not remain pious words.

Temporary ‘Grexit

Volgens the German newspaper Frankfurter Allgemeine Zeitung, the German minister Wolfgang Schaeuble sent a document to the other capitals which states that Greece should be given the choice between tightening measures plus the transfer of state property worth € 50 billion to a trust fund, or a temporary suspension of membership in the currency union, with a waiting period of at least five years.

French Minister Michel Sapin did the story as an attempt to put extra pressure on Greece. “This is not discussed,” the Frenchman in an interim briefing.

Several ministers, including Eurogroup President Jeroen Dijsselbloem, questioned the Greek measures, especially in the government’s ability to keep them in Athens also to be carried out. “The question is: will it happen? We are still far “, says Dijsselbloem.

Time Machine

According to the Slovak Peter Kazimir, it’s like he is in a time machine. “This package is good enough to finish the second program. I’m afraid it is not enough for a third. ” The analysis that the three institutions have made the sustainability of the Greek debt “is a big problem.”

had two weeks ago Ministers still just over € 15 billion to keep the country until the end of November on the leg. There is now talk of € 74 billion for three years. Of this, € 25 billion for the recapitalization of Greek banks.

Trust

The German minister Wolfgang Schäuble are therefore “extremely difficult negotiations.” The borrowing of Greece is now much greater than under the previous package, which was never finished, said Schäuble. The German minister also pointed out that even as the EU treaty specifically prohibits debt discharge.

A lot of confidence that the Greeks also measures really want to perform, he has not. “The Greeks have done everything to undermine it.”

Two weeks

Lack of confidence is the general lament that the Greek Minister Euclided Tsakalotos has to deal with. “Will the Greek government this really? We are talking about a proposal less than a week ago on the advice of the Greek government itself voted massively, “said VVD state secretary Eric Wiebes. He represents the Netherlands because Dijsselbloem is president.

The Irishman Michael Noonan and the Austrian Hans Jörg Schelling called for the start of the meeting a period of fourteen days. During that period, the Greek government would have to prove that it is serious about reform.

Greek parliament would have to take all the necessary legislation before the Eurogroup gives the green light for the start of negotiations. But according to Wiebe has shown in the past that the passing of laws in itself does not provide any guarantee that there is something happening.