Brussels, 25/10/2013 (Agence Europe) - The troika of international lenders to Greece (European Commission, European Central Bank and International Monetary Fund) will not return to Greece to end its assessment until the country's government has provided the information required, said the European Commission on Friday 25 October.
“The troika will be in a position to resume the review mission in Athens once sufficient information has been received from the Greek authorities to permit us to hold meaningful policy discussions in person. A return in early November is conditional on this being the case », said Simon O'Connor, spokesman for EU Economic and Monetary Affairs Commissioner Olli Rehn. Greek media suggest 4 November as a possible return date for the troika, but the Commission will no doubt refuse to confirm this until it has received the information it requires. The information in question includes how to fill the funding gap in the 2014 budget.
There is disagreement between the troika and the Greek government on the size of the funding gap. Athens says it will be €500 million, but the troika suggests €2 billion and each side seems to be refusing to budge. As far as the Commission is concerned, Greece is over-estimating future tax collection, and the troika does not want to allow the government the benefit of the doubt on this. A Greek government source told Greek media that the gap could be filled by changing the social security system. Quoted by Greek press agency ANA, the source said that the Greek government would not put up with a new ultimatum from the troika. Greece has financial commitments to make, however, and no more aid will be forthcoming until it has received a positive assessment from the troika assessment team. At stake is €3.1 billion from the eurozone and €1.8 billion from the IMF, but the aid amount has not yet been finalised. Greece does not need the cash so very urgently, but it does not want the situation to deteriorate. The red line for Greece is reported to be pay and pension cuts, but the government says it does not oppose the idea of structural reforms.
In Brussels for the European Summit, Greek Prime Minister Antonis Samaras sought support from German Chancellor Angela Merkel but she stated, at a press conference after her meeting with Samaras, that she said had only lasted five minutes, her position had not changed. Conclusion of the troika mission will enable the eurozone to address the question of the gap in financing for the Greek programme by the end of 2014. (EL/transl.fl)