The leaders of the Eurozone on Monday forced Greece to make major concessions to be under external supervision, in exchange for an agreement to begin negotiations on a new rescue of 86 000 million euros will allow the indebted country to stay in the currency area
The conditions imposed by international creditors led by Germany -. After negotiations which lasted all night at an emergency summit – force the Prime Minister Alexis Tsipras to renounce his promise to end austerity Greece and would fracture his left government because of public outrage.
“Clearly the Europe of austerity has won,” said Minister of Reforms Greece, George Katrougalos.
“O accept these draconian measures or there will be a sudden death for our economy because banks remain closed. So it is an agreement that we are practically forced,” he told Radio BBC.
string If the summit had failed, Greece would have found the edge of an economic abyss, banks closed their about to collapse and the prospect of having to print a parallel currency and, eventually, leave the European Monetary Union.
“The agreement was laborious, but was achieved. No ‘Grexit’ “said President of the European Commission, Jean-Claude Juncker, after 17 hours of negotiations.
The official rejected suggestions that Tsipras had been humiliated by accepting the current conditions even though the statement issued after the summit repeatedly insisted that much of the public policies of Greece must be agreed first with the financiers of the rescue.
“In this commitment, there are no winners or losers” Juncker said. “I do not believe that the Greek people have been humiliated, and that other Europeans have lost respect. This is a typical arrangement of Europe, “he said.
ESSENTIALS CONCESSIONS
The Tsipras own, elected five months ago to end five years of suffocating austerity, insisted that he and his team “fought a tough battle”, but had to make tough decisions.
So, got a conditional agreement for possibly 86 000 million euros (about 95 000 million dollars) over three years, with the guarantee that the finance ministers of the eurozone could begin within hours to discuss a bridge financing until the rescue Greece, which need parliamentary approval is ready.
The agreement is subject to Greece to a strict timetable in which to approve unpopular reforms on value added tax (VAT), pensions, cuts almost automatic budget adheres if the government fails its fiscal targets, new rules of bankruptcy and banking law in Europe that could be used for large depositors to assume losses.
German Chancellor Angela Merkel said might recommend “with full confidence “the Bundestag authorized the start of negotiations to grant the loan to Athens after the Greek Parliament approved the entire program and enacted the first laws.
The general secretary of Merkel’s conservative party said the German Lower House may vote on Friday the deal with Greece.
Asked if the conditions imposed on Greece were not similar to the Treaty of Versailles in 1919 that forced a devastating repairs defeated Germany after World War II, Merkel said: “I will not participate in historical comparisons, especially when I did not”
POLITICAL SCENE ADVERSE
.
The deteriorating economy Greece since Tsipras took office in January, and the deepening crisis in the last two weeks, created a greater urgency for funding, according to Merkel .
A senior EU official estimated that the cost to the Greek state for the last two weeks of political and financial turmoil in between 25 000 million and 30 000 million euros. A diplomat of the eurozone said the total amount could reach 50 000 million.
Under demands led by Germany, Tsipras accepted the transfer of Greek state assets valued at 50,000 million euros in a fund Coverage will not be in government hands, to be used mainly to support debt.
In a gesture to Greece , about 12 500 million euros of returns will for investments in the country, Merkel said.
The Greek leader had to shelve his toughest position and turn to the choice of a direct role of the International Monetary Fund (IMF) in the next program rescue, at the insistence of Merkel, who argued that he needed the concession for the German parliamentary approval.
In a sign of how difficult it could be for Tsipras Syriza convince his party to accept the agreement, the Minister Labour Panos Skourletis said the terms were unworkable and would lead to new elections this year.
The six most important measures including spending cuts, tax rises and pension reform should be enacted to Wednesday night the entire commitment should be approved by Parliament in Athens before negotiations begin for rescue
. SOURCE: REUTERS
No comments:
Post a Comment