Brussels, 20/04/2015 (Agence Europe) - The discussions between the Greek authorities and the 'institutions' (Commission, ECB, IMF and EFSF fund), which were held in Paris for logistical reasons this weekend, saw progress towards an agreement with Greece on the reforms to be carried out.
However, it appears that it will be impossible to make up for the lost time of recent weeks between now and the Eurogroup meeting Friday 24 April, and it is no longer anticipated that a decision will be reached at the Eurogroup of May (see EUROPE 11297).
“As we requested, the work has intensified”, Margaritis Schinas, spokesperson of the European Commission, explained on Monday 20 April. Decisions within the 'Brussels group' took place over the entire weekend and continued on Monday and Tuesday, ahead of an extraordinary meeting of the euro working group to be held on Wednesday 22 April.
This meeting will aim mainly to bring the eurozone states up to speed with the latest progress. According to a eurozone source, one objective will be to see whether this progress can lead to certain positive conclusions, albeit only very general ones, later this week in Riga. However, it is also clear that despite a calmer atmosphere and a certain renewed commitment on the part of the Greeks, there is still too much to be done for that to be possible. The level of detail the parties were able to go into is reported to have been reasonably high and the work carried out in Paris is now expected to be reflected by more technical work in Athens, where the atmosphere is also reported to be less overwhelming. Theoretically, the technical missions to Athens will make it possible to underpin the calculation of the economic impact of the reforms under discussion in the 'Brussels group'. Although things are making better progress than previously - not much has happened in the last two or three weeks, according to a source close to the dossier - these recent improvements are to be taken with a pinch of salt.
The Greeks have apparently still not clarified their financial situation. The contradictory information from Athens regarding the date on which the Greek authorities will be in dire financial straits have not helped matters. However, it appears that Greece has the wherewithal to hold out until June.
The decisions are not made in Brussels, but by the states. The fact that the 'True Finns' party, which is opposed to more aid to Greece, could end up taking over the Finnish government (see other article) may further tighten the Finnish position on this dossier. Helsinki, Tallinn and Bratislava have been described as the Eurozone capitals with the toughest stances within the Eurogroup.
“The Greek government must really now, and there is no time to lose, produce the reforms asked of it”, Pierre Moscovici, the commissioner for economic and financial affairs, told iTélé on Monday morning (our translation). “My plan is not to prepare for Greece to leave, it is to avoid it. I have no 'plan B', I only have a 'plan A'. 'Plan A' is Greece in the eurozone, but in order for Greece to stay in the eurozone, we need reforms now, no more dillydallying”, he stressed, highlighting the urgency of the situation. This echoed the words of the President of the ECB, Mario Draghi, who said over the weekend that the answer lay “in the hands of the Greek government”.
On the substance of the reforms, the Greeks repeated over the weekend that they would not budge from their red lines. The Deputy Prime Minister, Yannis Dragasakis, told the Greek newspaper To Vima that early elections or a referendum would be possible in the event of a breakdown in the talks. The Greek Finance Minister, Yannis Varoufakis, however, said last week that this option was not part of the government's strategy. (Elodie Lamer)