PARIS Amid growing concerns of markets, international creditors and European partners, the new Greek ultra-left government began this weekend toured the continent in search of allies to enable it to end austerity and, above all, restructure its huge public debt.
Since the election victory party Syriza, eight days ago, the new government of Prime Minister Alexis Tsipras has the world on tenterhooks on the issue of payment of the debt of 321,000 million euros, ie more than 170% of its GDP
Before starting your journey yesterday Cyprus, Tsipras launched an appeal for calm. “Our team did not act unilaterally on the delicate issue of debt, “he said in a statement. He added: “The agreement with our partners has just begun.” His finance minister, Yanis Varoufakis, yesterday traveled to Paris with the same goals.
After meeting with French economic leaders, Varoufakis said that Athens reject the extension of the current international bailout plan. To the minister, with such bailouts for five years Greece has become a sort of “drug addict, desperate for the next dose.”
“We must put an end to that situation” said the minister. The team Tsipras also announced that his country would give up collecting seven billion euros for the fifth and final installment pending rescue, which can create you serious liquidity problems, since in the next six months must face maturities 10,500 million euros.
Under these conditions, Athens will be forced to file for default. But the biggest concern of Europeans is the Greek banking system, which, after the massive capital flight in recent weeks, depends on cheap loans from the European Central Bank (ECB) to fund daily operations. A liquidity the ECB could stop at any time.
Varoufakis arrived in Paris waiting for its European partners to accept the idea that the repayment of the debt of the country is linked to its ability to restore growth, and expressed its intention to reach an overall agreement on the financial situation of their country by the end of May.
“France will play its role as a friend of Greece nation,” turn the French finance minister Michel Sapin. It suggests the possibility that France will play the role of mediator between Athens and the most reluctant European capitals, underlined the need for a “new contract” with Greece. The minister insisted that the “Greek government should have time to breathe”, proposing their instruments to overcome the current difficulties and build its reform program. Sapin insisted that the place of Greece “is in the euro”. But cautioned, however, “that the debt can not be annulled.”
Before the victory of SYRIZA, Tsipras had indicated its intention to cancel part of the Greek debt contracted with European states, rescheduling debt held by the ECB and pay agreements signed with the International Monetary Fund. Varoufakis travel to London today and tomorrow, to Rome, where will Tsipras. The new premier after tomorrow should meet with the president of the European Commission, Jean-Claude Juncker, and French President François Hollande.
In descontracturado style (open shirt untucked and leather jacket ), which contrasts with the strict elegance “blue suit and tie” respected by European officials, Varoufakis also adds a good dose of provocation aware of the tension that causes the attitude of his government in Germany, the minister said he was “particularly eager to travel “to Berlin. “It is an essential visit,” he said.
Before leaving Paris, Varoufakis announced that his ministry hired the bank French business Lazard to advise on the management of fiscal policy and Greek public debt. The key men in this task will Matthieu Pigasse, vice president of Lazard in Europe and majority owner of the newspaper Le Monde, and the economist Daniel Cohen. Both advised the Argentine government in restructuring its debt in 2003. That decision is not fortuitous. Pigasse recommends a reduction of 50% of Greek debt held by the public creditors, ie a cut of 100,000 million euros.
Lazard and advised Greece between 2010 and 2012 and currently works with Banking Restructuring Fund Greek. “This reduction is not only necessary but possible,” Pigasse said. “Greece has become the laboratory which could be tomorrow Europe.”
- 67% of Greek citizens consider that Syriza, the radical left coalition won elections in Greece eight days ago, is able to govern the country, compared to 27% who do not believe that the formation of Alexis Tsipras can revive the economy, as revealed in a survey conducted by the research institute Public Issue published yesterday by the newspaper Avgi.
- 70% of respondents believed that the new prime minister will succeed in his new role, compared to 23% who disapprove. 60% are satisfied with the outcome of the general election, in which Syriza won with 36.3% of the vote.
- A quarter of respondents approved the coalition between leftist and right-wing nationalist party Independent Greeks. Meanwhile, 71% believe that the responsibility for the defeat of the conservative New Democracy rests with its leader Andonis Samaras.
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