Tuesday, March 24, 2015

Merkel and seek to mend fences with Tsipras conciliatory tone after … – Financial Journal

Constanza Morales H.

After two months of heavy fighting for the negotiations on the bailout for Greece and the reforms that this country must implement to receive funds, German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras sought to mend fences and rebuild trust between the two nations to express a conciliatory tone after their meeting yesterday in Berlin.

In his
first visit to Germany since becoming premier in late January, Tsipras said the meeting “could be the first step to start a new relationship between the two countries.”

The Greek authority
detailed the session that lasted for about an hour and a half was “very important to understand each other better” and called to let stereotypes aside. “The Greeks are not lazy and can not blame the Germans for the problems in Greece,” he said.


Tsipras called to avoid new divisions in the euro area and find a common solution to the problems of the block that is beneficial to his country and its partners.


“did not come to Germany to resolve liquidity issues in Greece, but to find common political ground to advance” he said.

Best wishes
For its part, the Chancellor said that Greece belongs in Europe and you want your economy to succeed.
“We want Greece is economically strong, we want Greece to grow and above all we want Greece overcome its high unemployment, “he said after the second meeting between the two in five days.
Merkel added that the talks showed” an appetite for cooperation ” but acknowledged that some differences remain.


The head of the German government said his country sees all its European peers as equals despite having the largest economy in the region and wants good relations with all Member States, including Greece.


When asked about the new funds that are looking for Greece to avoid a default, Merkel explained that these decisions have to take the Eurogroup .

Draghi optimistic
While Merkel shook ties with Tsipras, President of the European Central Bank Mario Draghi testified before the Committee on Economic and Monetary Affairs of the European Parliament. In that instance, the economist expressed cautious optimism that Athens could benefit from the program of asset purchases (QE, its acronym in English) and get normal access to funding agency, although it called on the country to honor its debt.


“The time will come when we will be able to restore the exemption, we will be able to do QE for Greece, but several conditions must be met and not met yet,” he said. “We are confident they will be met, as this process of political dialogue is being rebuilt,” he said.


The issuer decided to no longer accept Greek bonds as collateral in exchange for funding to local banks, forcing them to rely on emergency money. The nation can not take advantage of the QE because the ECB has bought much public debt of the nation.


Draghi warned that Greece and its creditors must complete the review of the rescue and urged authorities to meet its obligations. “Greece and its international partners should now focus on setting the conditions for successful completion of the review” program.


Athens “should commit to fully honor its debt obligations towards all its creditors and argue all future policies on this commitment, “the central banker.
The monetary chief added that the Greek lenders are currently solvents and ruled that there is a systemic risk in the short term.

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