Varoufakis rule out an agreement in Luxembourg – The Economist

The Bundesbank warns that the consequences of a default are “difficult to control”.

Tsipras was criticized for participating today at an economic forum in Russia rather than in Luxembourg. Photo: AFP

Yanis Varoufakis, Greek finance minister said in Paris that does not believe there is an agreement on the debt of his country at the meeting Eurogroup scheduled for Thursday in Luxembourg.

Asked in Paris after a meeting with Angel Gurria, secretary general of the Organization for Economic Cooperation and Development, about the possibility of an agreement, said Varoufakis “I do not think so.” “Now it is the politicians who must reach an agreement,” he added.

Greece must repay 1,600 million euros to the International Monetary Fund (IMF) to make ends meet and not have enough money to meet This maturity; meanwhile, he continues to pay its civil servants and pensions.

Meanwhile, Athens has a batch of 7,200 million euros in aid under a second rescue plan IMF and the euro zone but your creditors condition the delivery of this amount to a reform program on which the two sides have not yet managed to agree.

“This government was elected to defend the Greek people with a program of very ambitious reforms “said Varoufakis. “I hope that institutions take account of this program,” he added.

Meanwhile, Wolfgang Schäuble, German finance minister, confided to parliamentarians in your country who have little hope of reaching an agreement with Greece.

In addition, Tsipras will be in Russia at an economic forum in St. Petersburg, thus ignoring a call from the United States, to take a “serious effort” to exit the impasse.

Indeed, the US Treasury Secretary, Jack Lew, told a congressional committee that “external shocks” may “disrupt financial stability in the United States.”

“With the global integration financial markets we know today, external shocks have the ability to disrupt the financial stability in the country, “said Lew.

He continued by citing the Greek example, where” negotiations and the road to an agreement is complex and challenging “.

” We promoting a fast for Greece to be able to honor its payment agreement, “Treasury Secretary reiterated.

Meanwhile, Alexis Stipras , Greek Prime Minister remained, however, a hard and uncompromising speech. “If Europe insists on fixing this incomprehensible” to ask for a reduction of the Greek pension “has to bear the cost of the consequences, which will not benefit anyone.”

In addition, Janet Yellen, president Federal Reserve, warned that the world economy could suffer major disruptions if Greece and its creditors can not agree. “This is a very complicated situation. If there is no agreement, I see the potential for there changes that could affect the European economic outlook and global financial markets, “he said.

Euro does not depend on Greece

The existence of the single European currency “does not depend on the evolution of Greece”, estimated Jens Weidmann, president of the German central bank, warning instead on “the consequences for Greece hardly controllable” if the country does not pay its creditors.

“The contagion is not excluded; one Grexit (Greek exit from the euro zone) could alter the character of the monetary union. But the latter also changes when isolated countries do not take responsibility to ensure a stable currency, “said the head of the Bundesbank, in an interview with French daily Les Echos, as well as the Spanish El Mundo and Italian La Stampa.

For the president of the Bundesbank, “the ball is clearly in the camp of the Greek government to decide the country’s future.”

“The failure to reach agreement would mean the beginning of a painful path that would lead to a debt default of Greece and then to leave the country in the euro zone and, most likely, the European Union, “writes the central bank of Greece in its annual report released on the economy country.