Brussels, 03/12/2014 (Agence Europe) - In an “ideal world”, the “troika” (Commission, ECB, IMF) would reach an agreement with Greece to conclude the monitoring mission ahead of the Eurogroup meeting of Monday 8 December, but this is “not my expectation”, a senior EU official stated on 3 December.
These declarations follow an appeal by the President of the Eurogroup in the newspaper Ta Nea. Jeroen Dijsselbloem called on the parties to agree before Monday, otherwise “we won't be able to take decisions on Greece (…) next week”.
The same senior official nonetheless described himself as “optimistic”, saying that not only could the troika be back in Greece, but that progress could also be seen on the ground as regards the reforms called for. Early on Wednesday, the troika sent a letter calling for clarifications on the proposals submitted by Athens on Sunday. On Tuesday, the Greek Prime Minister, Antonis Samaras, “clearly rejected” the calls for tax increases on new austerity measures. At the Commission, it was explained that this exchange came in the context of permanent contact between the two sides.
If the parties fail to conclude this mission before the end of 2014, when the Greek bailout plan expires, the final tranche of the European Financial Stability Fund (EFSF) will not be paid. And unlike the Portuguese, the Greeks do not appear to be able to do without this tranche of aid, a Commission source stressed. Hence the possibility that the Eurogroup will decide to extend the programme, but the request must come from the Greeks. At this point, the Eurozone ministers cannot agree how long the programme should be extended for. Given the fact that certain national parliaments will have to take position on this extension, the issue needs to be put to bed by 14 December. For this reason, it is possible that the Eurogroup meeting of 8 December will partially take this decision.
As for the preventative credit line to accompany the exit from the bailout plan, if the Greeks officially apply for it, an initial ministerial discussion may be held on 8 December, although no decision will be made until the Eurogroup meets again. According to the same senior official, the Greek side is now more inclined to accept the IMF being part of this measure to accompany the bailout plan exit. (EL)