PARIS Just 90 minutes before the deadline set by Europe, the Greek government of Alexis Tsipras presented his proposed reforms last night hoping to get a new emergency rescue plan of about 53,500 million euros to get the country out of financial suffocation and avoid Grexit .
This presentation was the first step in a process that, if accepted for the weekend by various bodies will save in the short to Greece’s banking collapse and a new default.
The plan includes a reform of the pension system, a schedule of privatizations, a tax increase shipping companies, increased VAT restaurants and to tax exemptions to their islands. In return, Greece asks 53,500 million euros to take over the next four years covered its debt obligations.
These figures -publicadas press yesterday Greek- exceed 8 billion euros in savings expected in projects earlier because the country has returned to recession. This year should register a growth of 0.5%, but, subjected to several months of uncertainty and control two weeks capitales- its GDP fall back between 3 and 5 percent.
The day before yesterday, Athens had formally requested a new aid plan three years to the bailout fund eurozone, the European Stability Mechanism (ESM).
According to the plans on Tuesday at the summit of European leaders timetable, proposals presented by Tsipras should be “immediately” studied by two of its creditors (the European Commission and the European Central Bank). Its conclusions will be submitted tomorrow to the finance ministers of the eurozone, on the eve of a new special summit of the 28 countries of European Union (EU), called for tomorrow in Brussels.
In a sense today and tomorrow will be the most critical days of the whole process, because according to the treaty that regulates MES- the decision to start formal negotiations is in the hands of the board of governors of that mechanism, composed of the 19 ministers of finance eurozone. That is, the same members of the Eurogroup.
Submitted to extreme pressure from the EU, Tsipras also had yesterday an uphill battle to overcome the resistance of the more leftist wing of his party, Syriza and of its coalition partners, the Eurosceptic right-wing Independent Greeks.
In any case, just three days after the EU summit that should definitely seal the fate of Greece, the issue of restructuring Debt monopolized the discussions.
“A realistic and concrete proposals from Athens, also need realistic proposals about the viability of that debt by creditors,” said European Council President, Donald Tusk supporter of the permanence of Greece in the euro zone.
The government of radical leftist Tsipras, who took office in January promising to keep his country was subjected to new austerity measures, calls for a reduction of huge debt, amounting to 320,000 million euros, ie 180% of GDP of the country. Disagree with the current Greek government on its overall policy, the IMF acknowledged in recent days the need for such cuts.
The Greek debt, whose repayment is now extending to 2054, was already restructured 2012 at the expense of private creditors, who own between 15 and 20%.
But Europeans, in particular Germany and other countries that defend the hard line with Athens, have rejected that option. Yesterday, Chancellor Angela Merkel reiterated this position to rule out “a classic haircut”. This measure “is out of the question,” he said, aware that neither the German Parliament and the Nordic countries will accept this measure
Under these conditions, other solutions are possible:. Give Athens more time to repay debt or modify interest rates.
“Everyone knows that the Greek debt will never be repaid,” says economist Philippe Dessertine. In his view, creditors will probably at least 50 years to pay interest and thus avoid the discomfort of public opinion. .
No comments:
Post a Comment