Despite the strong rhetoric and ultimatums are expected to Greece and its creditors to reach an agreement allowing the country to remain in the Eurozone, composed of 19 countries.
Investors and public policy makers have not panicking despite the break . of the talks between the parties on the new Greek government attempt to renegotiate the terms of its bailout
Perhaps this is happening because something has happened before: the eurozone has been close to breaking with Greece but each time has been agreed.
Both parties want to avoid the worst scenario, in which the financial assistance to Greece would be cut and forced him to leave the eurozone, causing devastation in markets and shake to European and global financial markets.
“If Greece leaves the euro financial chaos unleashed also be the end of the government of SYRIZA,” said Jane Foley, an analyst at Rabobank International, referring to the radical party that won the elections.
“That’s why we think it is possible to reach a last-minute agreement between Greece and its creditors,” he said.
However, the parties have little time since the Greek bailout program ends on February 28 and the more time passes before reaching an agreement markets will become more nervous.
Meanwhile, Athens Stock Exchange fell slightly yesterday while rates instruments Greek government debt steadily rise, a sign that investors fear a potential bankruptcy.
None ruled that Greece can not meet its debt payments, which could trigger enormous consequences and unseen in Europe and the world economy.
The last moment of nervousness came after eurozone informed Athens must request an extension of your program Rescue for Friday, before further negotiations on the future financing and the country’s direction resumption. Investors fear that both parties are too far apart, especially since the new Greek government rejected the bailout as a pillar of his campaign.
Greece received a ransom for 275,000 million since 2010, but its different governments have failed to implement austerity measures and budget reduction or pension.
Jeroen Dijsselbloem, the senior official in the euro area that made the ultimatum, expected to accept Athens extend the bailout program and to encourage that country released a sketch for immediate renegotiation of some of the conditions.
The agreement may depend on something as simple as defining what is an extension.
The Greeks do not want any agreement to suggest that the current program remains in force and instead want a “bridge program”. Beyond how to name both parties want the country to receive loans for a few months to gain time and to continue negotiations. If they can agree on how to describe this agreement to save face for both sides can reach an agreement, analysts say.
Tsipras presumed dead austerity plan and calls time, not money
Prime Minister Alexis Tsipras, considered “dead” the previous program of austerity and reforms agreed by the Government of Athens and the troika and rejects the idea of extending it by another half year, it said in an interview with the German weekly Stern.
“For us, the old austerity program has died. The proposal to extend it for another 6 months is paradoxical. The developing such ideas wasting your time, “said Tsipras.
In this sense, rejects the term given by the Eurogroup until Friday to request an extension of the rescue and emphasizes that” for such an ultimatum should not have place in the EU “.
” Nobody can require us to continue where you left there the Government of Samarás “he says.
He said that no new credit demands, but” time to go ahead with the reforms, “for claiming a” bridge program “. Moreover, he said that Greece has no plan B for a possible exit from the Eurozone.
“I do not need it because we remain in the euro. But do not reach this goal at the expense of the weak, as with our previous government, “said
Source:. AP
No comments:
Post a Comment