Brussels, 02/12/2013 (Agence Europe) - On Monday 2 December, the European Commission was visibly irritated over the interpretation in the press of one of the controversial negotiating points standing in the way of the conclusion of the mission of the troika (Commission, ECB, IMF).
On Friday, a troika source complained that a number of commitments made earlier in the year had been called into question by the Greek authorities. These are believed to include the lifting of the five-year moratorium on the seizure of real property on which the owners have defaulted on their mortgages. This moratorium, which affects owners who owe the banks less than €200,000, expires at the end of December.
On Monday, the Commission explained that it was not proposing to lift the moratorium. It wishes to discuss with the Greek authorities “how to reformulate the protection offered to the most vulnerable households and ensure that this protection is properly targeted”, leaving no room for abuse, said Simon O'Connor, spokesperson to Euro Commissioner Olli Rehn. The current system “protects the most vulnerable people” but is also open to abuse from others, thereby delaying “the possibility for the Greek banks to get back on track and start lending to households and SMEs again to invest and create jobs”, he added. This sensitive issue is currently being discussed with Athens. Greece got into debt to the tune of €50 billion to recapitalise its banks, but lending has not resumed. In response to criticism from a journalist, O'Connor stressed the importance of a healthy, well-supervised banking system to allow us to “leave this crisis behind us”. He added that protection for the most vulnerable people was a matter for the state, not the banking system.
The troika will not get back from Athens before the next Eurogroup meeting on Monday 9 December. For the time being, talks are continuing on a long-distance basis on “a number of outstanding issues”, O'Connor said. The payment of the sub-tranche of €1 billion, expected since October, could take place following the simple approval of the technical experts of the Council on the basis of the recommendations of the troika. Greek Finance Minister Yannis Stournaras, quoted by ANSA, said that the payment could be possible before the end of 2013. (EL/transl.fl)