Thursday, February 19, 2015

Debt crisis in Greece – Athens provides deep insights – Süddeutsche.de

Debt crisis in Greece – Athens provides deep insights – Süddeutsche.de

  • The Greek government under Prime Minister Tsipras published documents from the negotiations of euro zone finance ministers.
  • In the 30-page document is available, which points Finance Varoufakis addressed in the talks.
  • reason for publishing are probably internal political considerations. The government can show that they negotiate hard and in the sense of SYRIZA voters.

Who is responsible analysis of Cerstin Gammelin

In the dispute about the inconclusive meeting of euro zone finance ministers on the future of Greece is that the government of Alexis Tsipras has done an unusual step Wednesday. The Premier made the negotiation documents of the two failed sessions publish.

can be read on 30 pages what the Greek Finance Minister Yanis Varoufakis its Departmental colleagues lectured on 11 and 16 February, the obligations on the Euro Group of it . and asked how the compromise proposal from the European Commission had looked



Greece negotiations Mr Schäuble, stick to your guns!

In Greece expectations are being awakened, can not consist so. Instead of changing spot something skirmishes are fought with Brussels by the new government. So it can not work.

(Video: Süddeutsche.de Photo: AFP)

Publishing negotiation documents is not common

EU diplomats in Brussels responded irritably. The publication of confidential negotiation documents was “not normal”. The Greek government is, however, not the first, which defies diplomatic practices in order to provide clarity. Last was the Italian Prime Minister Matteo Renzi provide a confidential letter from the European Commission to the Italian budget online last fall.

The documents show that the Greek delegation had traveled with some concrete demands and numbers to the meetings, alone with six sides for the second meeting of department heads, which was canceled on Monday night, and led to the ultimatum of the Euro Group, which Athens quickly write a letter and should make the request for an extension of the rescue program.



Greece newly elected Prime Minister Alexis Tsipras irritates the EU diplomats.

(Photo: Thanassis Stavrakis / AP )

About some reforms Greece and its creditors are in agreement

Varoufakis lists in the “non-paper”, ie in the confidential documents, on 16 February, the reforms of the current bailout program, via which the technical experts of Greece itself and European Commission, the European Central Bank and the International Monetary Fund agree: the reform of the tax system, tax administration and public financial management, combating corruption, improving the business climate reform of the judicial system and public procurement as well as the implementation of European legislation on network industries and in competition law. The Minister of Finance defined “red lines”.

The currently agreed labor market reform did not fit the economic situation. Together with the International Labour Organisation proposes a new approach to search, enhanced the protection of workers dependent on economic growth. A new approach should also apply to the sale of government-powered. Athens will not always stop, but check case by case ongoing privatization. The still valid goal to be about 22.3 billion euros from the sale in 2020, she holds “unrealistic” for. All in 2011 (50 billion euros by 2016) and later in 2012 (50 billion euros by 2020) agreed objectives were not achieved. The measures provided for more 2015 revenue of 2.2 billion euros could by the payment of earnings that the European Central Bank have (ECB) obtained with Greek bonds are compensated. Lost

Two billion euros through campaigns

Varoufakis According to the state budget in January 2015, escaped through the campaign two billion euros. The authorities want to generate additional revenue of 5.5 billion euros by combating illicit trafficking, tax evasion and corruption and introduce a property tax.





debt dispute stalemate Greece continues

Is this a turning in? Athens on Thursday will ask for a credit extension. However, Germany’s Finance Minister Wolfgang Schäuble demands more from the Greek Prime Minister Alexis Tsipras.

(Video: Reuters Photo: AFP Photo: AFP)

In 2015, Athens must pay 17 billion euros in cash deposits, especially at the International Monetary Fund and the ECB. In order to serve the loans, Athens wants to negotiate the conditions of a new contract with the IMF and the euro countries.

Varoufakis calculates that the previous calculations for debt developments were not correct. It is sufficient to generate in 2015 and the following years, a primary surplus of 1.5 percent to achieve debt sustainability by 2020. Varoufakis also refers to calculations from the IMF and the euro rescue fund ESM.



Greek government wants to show that they negotiated hard

EU diplomats believe that Tsipras the transaction documents before all makes publicly for domestic political considerations. He wanted to show the public that “the government is negotiating hard”. And at the same time prepare to that the new government will have to make some concessions.

The letter with the application for renewal, as was reported on Wednesday in Athens should be sent on Thursday. On this day Tsipras wants to make two campaign promises true. He wants to bring in a bill to parliament, which provides for emergency measures to protect the Erstwohnsitzes of citizens and the prohibition of resale of real estate loans to foreign funds. In addition Tsipras wants to introduce in the labor market, the three-year term of collective agreements, the extensibility of their validity as well as arbitration bodies again.

At the end of this speech on Tuesday, he called indirectly a meeting of European leaders to Greece. “The way out of the achieved during the Euro group meeting impasse can show us no technocrats,” the prime minister said, “but only the European leaders.”

The ECB showed on Wednesday night patient with the disputants. She raised the sum for approved emergency assistance of the Athenians central bank to domestic financial institutions around 3.3 billion to 68.5 billion euros. Banks can thus provide businesses and citizens with more cash.

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