The finance ministers of the euro zone today again failed in his bid for Greece and its creditors reach an agreement, just five days after the deadline to avoid a default of Athens, but negotiations will continue at all levels.
The future of Greece was discussed at a meeting of finance ministers of the Eurozone, but without agreement, holders of this portfolio decided to suspend when the meeting began in Brussels a summit of the 28 member countries of the block.
“finished for today. The institutions (creditors) and Greece continue working. The Eurogroup will meet more Later, but not today, “he tweeted the Finnish Finance Minister, Alexander Stubb. “The debate continues today, tomorrow, with the aim of reaching convergence,” the Greek minister said Yanis Varoufakis of him.
A little earlier, on reaching the summit, German Chancellor, Angela Merkel, made it clear that “we do not have the necessary progress, even in some respects have the impression that back again.” The President of the European Commission, Jean-Claude Juncker promised that work “last minute” to find a solution.
However, some leaders, starting with Tsipras, were confident that in the end there is agreement. “European history is full of disagreements, negotiations and then commitments. Therefore, after the Greek full proposal, I am confident that we will reach a compromise which will help the euro zone and Greece to overcome the crisis, “Tsipras said on arrival at the meeting.
The president of the European Council, Donald Tusk, for his part predicted that” this story will have a happy ending. ” “The agreement is possible. The agreement is necessary,” said French President Francois Hollande, noting that “we must know how to end a negotiation”.
Two proposals, criticized
The French president, Francois Hollande, said that “we must know how to end a negotiation” stressing “there is nothing to gain by spending time” when “ Greece and You do not have it “. The ministers were on the table two proposals, one of the institutions, incorporating some elements presented by Athens and other Greek government.
In the morning, Tsipras, President of the European Commission, Jean- Claude Juncker, the managing director of the International Monetary Fund, Christine Lagarde, president of the European Central Bank, Mario Draghi and Eurogroup Jeroen Dijsselbloem, failed to reach a common draft so they decided to present the two versions.
The ministers’ meeting, the fourth in a week, lasted about three hours and ended without results. “Many colleagues disagreed and criticized not only text but also our institutions,” said Greek Minister Yanis Varufakis. “The ministers studied the two proposals but with much frustration” by not having the time to analyze the documents, he explained a European source.
tax and pensions, two thorny issues
The issues that block remains largely the same: the level of tax and pensions. In its proposals, leaked to the press, ask the creditor institutions discourage early retirement, and gradually bring the retirement age to 67 years between now and 2022.
On the other hand ask VAT unify a 23%, except for food, energy and water (13%), books, theater and drugs (6%), while eliminating discounts to the inhabitants of the islands.
Also ask Athens a primary fiscal surplus (excluding debt service) of 1%, 2%, 3% and 3.5% of GDP this year and the next three, respectively.
The negotiation is already complicated on Wednesday between Athens and its creditors (Commission, ECB and IMF), when the government submitted counterproposals Tsipras rejected by them.
According to Greek government sources, Greece retired in the last hours Two proposals in the list, including increased taxation of pensions and health care for retirees also co socially unpopular after six years of crisis and austerity.
The Greeks tried to compensate with equivalent financial measures. The Greek proposals envisage a fiscal effort of eight billion euros in 2015 and 2016. 93% of this amount would come from increases in taxes and social contributions, and other expenses reduced.
Greece needs an agreement with its creditors to receive 7,200 million euros of its bailout program, blocked since last summer due to lack of consensus on the reforms and adjustments asking its creditors.
With that money, Athens can repay the IMF on June 30 a payment of about 1,500 million euros, which currently can not perform on their own, to have empty coffers.
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