Wednesday, April 27, 2016

Tusk calls for a Eurogroup in “coming days” and does not convene extraordinary summit – The Economist

The European Council President Donald Tusk today called a meeting of the Eurogroup in the coming days to avoid a “renewed uncertainty” about Greece, so, at least for now, will not convene an extraordinary summit as requested by the Greek Prime Minister Alexis Tsipras.

“I have spoken before Prime Minister Tsipras. I am convinced that there is still more work to be done by the finance ministers’ and eurozone economy, Tusk said after meeting with President of Albania Bujar Nishani.

Tsipras wanted a summit of extraordinary leaders to break the deadlock in which there are negotiations with creditors to close the contingency measures that the Eurogroup and the IMF ask Greece and and to close the first revision of the third bailout, which has been pending since last fall.

After consulting the presidents of the Eurogroup, Jeroen Dijsselbloem, and the European Commission (EC), Jean-Claude Juncker, and after the conversation with Tsipras, President of the European Council he considered that it is not time yet to raise the Greek question at the level of heads of State and Government, although in his opinion the ministers must treat urgently.

“We have to avoid a situation of renewed uncertainty for Greece. We therefore need a specific date for a new meeting of the Eurogroup in the near future, and I’m not talking about weeks but days, “he said Tusk.

However, Dijsselbloem resigned yesterday to convene a meeting of the finance ministers and extraordinary finance tomorrow, believing that needed “more time” to close the negotiations between Athens and its creditors.

the vice President of the EC and head of European diplomacy, Federica Mogherini , he said after the meeting of the College of Commissioners that the EU executive believes that “given all conditions to find a solution very soon at the Eurogroup meeting.”

also quoted the European Commissioner for Economic Affairs and financial, Pierre Moscovici, who said last Friday that the agreement between Greece and creditors is close at hand.

“We have to give just a few more steps and we hope that this can be done in a very limited period of time, “Mogherini said on behalf of the EC.

the members and creditors of Greece asked last Friday at the informal Eurogroup meeting in Amsterdam to Athens to take measures of preventive savings that automatically activate in the event that deviates from its fiscal targets, and took the first step to open the debate on granting relief Greek debt.

the requirement of contingency measures for 3.600 million euro seeks to please the IMF, which considers that the measures discussed in the amount of 3% of GDP, as a profound Hellene pension reform or changes in the fiscal system are not enough for Greece to fulfill its commitment to achieving a primary fiscal surplus of 3.5% in 2018.

Both the European Commission and the European Central Bank and the bailout fund eurozone believe that Athens will fulfill itself, but have agreed to ask the country this new package to reach an understanding with the IMF.
 

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