The finance ministers of the euro area must decide whether to accept the reform proposals of Greece and negotiate a third bailout could amount to about 59,000 million dollars over three years, but Europe doubt the Greeks.
The “lack of confidence” is the main obstacle in the negotiations with the Greek government, they said on Saturday several finance ministers of the eurozone, together emergency in Brussels to decide whether to grant a new bailout for Greece and prevent its exit from the euro.
“There is a serious problem of trust. Can we trust the Greek government to do what it has promised in the coming weeks, months and years? “asked Jeroen Dijsselbloem, Eurogroup Chairman and Dutch Finance Minister.
His German counterpart, Wolfgang Schauble, the main supporter of the hard line with Athens, he predicted its “extremely difficult” negotiations and regretted that “definitely can not trust promises” of Greece.
The creditor institutions-the European Commission, the European Central Bank and the International Monetary Fund welcomed favorably on Friday the new offer of Athens, including pension cuts, tax increases, privatizations and new taxes for companies.
The purpose of Athens is to convince its partners of that grant which would its third bailout after the 2010 and 2012 loans accounted for 240,000 million.
This third bailout could last three to four years would mean new loans worth estimated at 74,000 million 82,000 million euros.
The reforms proposed by Athens in return are very similar to those demanded by creditors a few weeks ago before the expiry, on 30 June, the second bailout the country.
But 61% of Greek voters rejected the package in a referendum last Sunday, a query that “uncertainty generated by the institutions”, the Spanish Economy Minister Luis de Guindos, a shared opinion said Saturday by several of his counterparts from the euro zone.
On arrival in Brussels, the IMF managing director, Christine Lagarde, I want to be optimistic and said to expect “much progress” at the summit of the Eurogroup, while European Commissioner for Economic Affairs, Pierre Moscovici, said the “key” is the “speed” of Greece in implementing reforms.
Given the lack of confidence, several countries have made it a condition to the rescue the Greek parliament approved in the coming days some of the announced reforms, as a sign of “seriousness”, European sources said.
According to a European source, the chances of reaching an agreement are now “50/50″.
To Greece will not be easy to overcome the resistance of some European countries, particularly Germany and the Baltic countries, who see no reason to adopt a third rescue of three years “with one of the conditions for five months” According to this source.
The debt outstanding issue
After the Eurogroup on Saturday, heads of state and government of the 28 members of the European Union will meet on Sunday an extraordinary summit on the best, guarantee agreement.
Even if an agreement is reached, the rescue needs the approval of at least eight German national parliaments, including the Bundestag.
Prime Minister Alexis Tsipras on Saturday morning received the endorsement of the Greek Parliament to negotiate the proposal with Brussels by 215 votes in favor out of a total of 300 deputies.
But several MPs Syriza, his party, abstained in the vote, which observers say could herald changes in the government coalition.
“I am pleased that a majority in parliament had last night but many expect the Greek government start acting fast because mostly been diminished, “said Michael Noonan, the Irish Finance Minister.
Tsipras is confident that an agreement with its creditors put back on the table the issue of removing or least the restructuring of the country’s huge debt, which reached 180% of GDP, some 320,000 million euros.
The question divides Europeans. For one thing Athens has the support of France, the IMF, the President of the European Council, Donald Tusk and many economists. However, Schauble again reiterated the German position on Saturday and recalled that “the treaties of the European Union there is no possibility” to forgive her.
In the streets of Greece, the situation was no different this Saturday which it is repeated for almost two weeks ago, when capital controls were imposed to prevent capital flight and that other measures restricted to 60 euros daily money that can be withdrawn from ATMs.
In front of a bank, Vassilis Papoutsoglou, 52, waited his turn to get money. “We still do not know what will happen. Can we expect something better or be the Apocalypse?” He asked.
The closing of Greek banks are expected until Monday, but the Deputy Finance Minister Dimistris Mardas, hinted on Friday that could be extended.
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