Monday, June 15, 2015

Greece defiant after failed negotiations – Trade

Prime Minister of Greece, Alexis Tsipras Monday adopted a defiant tone with creditors, hours after failing to return to negotiations between the two parties on the aid program Athens.

The leader said that Greece wait “patiently ” until their creditors International Monetary –Fondo, European Central Bank and European Union (EU) -. “adhere to realism”

Tsipras creditors attacked by “political opportunism” to try to force Athens to cut further its pension system, a move that anti-austerity government has always refused to implement.

“One can only see a political purpose in creditors’ insistence on further cuts in pensions after five years of looting under the bailouts,” said the prime minister Ephimerida leftist daily Syndakton ton.

Greece and its creditors negotiate the disbursement of the last tranche of aid promised Athens, 7,200 million euros, in exchange for a program of reforms which fail to reach an agreement.

The government of Tsipras said he was prepared to return “at any time” to the negotiating table, but insisted that the Greek offer must be based talks .

Greece would, however, willing to accept the goals of primary surplus (outside of debt payments) set by creditors this year (1%), according to Annika Breidthardt, a spokeswoman for the European Commission.

That point meant one of the greatest obstacles in the negotiations, and that Greece wanted a primary surplus of 0.6% for 2015.

– Disagreement between creditors –

The IMF and the EU presented Athens a five-point proposal, which insist a tax adjustment for the country and the pension reform.

The “ball is undoubtedly on the roof” of Greece, he said on Monday the ECB President Mario Draghi.

“not accept measures to increase VAT on basic food goods and a reduction of pensions,” he said, for its part, government spokesman Gabriel Sakellaridis.

“is one of the most expensive pension systems in Europe and is part of a reform requests creditors” , said the European Commission , recalling that “the institutions did not request a reduction of pensions at an individual level.”

IMF chief economist, Olivier Blancard , considered on Sunday that a VAT hike and pension reforms were essential in Greece, While calling on European governments to have a gesture on Greek debt.

The latter, who fear pressure from their constituents, refuse, however, to accept any removed on Greek debt.

The disagreement between creditors facilitates negotiations and there is no meeting scheduled with Athens to the Eurogroup on Thursday. Finance Minister, Yanis Varoufakis will represent Greece to its counterparts, while Tsipras will travel to Moscow for the second time in two months.

The financial situation in Greece continues to raise concerns about its possible exit from the eurozone, as we approach the June 30 date on which the aid program expires Athens and in which the country must repay 1,600 million euros to the IMF.

“There is a certain risk of output (of Greece from the euro zone) would not be good for Europe and, of course, would be bad for the Greek people,” said Jose Manuel Garcia-Margallo, Spanish Minister of Foreign Affairs.

The Athens Stock Exchange reflected those concerns Monday, down 4.68%.

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