Today, the Greek Prime Minister has stated that Greece has sent a comprehensive reform proposal to its international creditors “whose acceptance by the institutions, our lenders and our partners in Europe will mark the end of the scenario of divisions in Europe.”
This was largely taken as a response to a meeting held in Berlin between Germany, France and the lending institutions. In what is taken to be a reversal of the “take-it-or-leave-it” dilemma, government ministers have since followed up on the statement speaking about red lines, the willingness to call elections if a deal that cannot pass through the parliament is put on the table, and reiterating their conviction that no deal can entail further austerity measures. Among them, Deputy Prime Minister with oversight over Economic Policy, Yiannis Dragasiakis, and Labour Minister, Mr. Skourletis.
The meeting in Berlin could also be interpreted as a sign of determination by the Franco-German axis to keep Greece in the Eurozone. There is little doubt that failure to reach an agreement over the next few days may trigger a chain of events that will not longer be controlled: default, followed by capital controls and a potential exit from the euro zone. In this scheme, Euro membership will no longer be considered irreversible. This was affirmed yesterday in an interview of the European Commission President, Juncker, with the German “Süddeutsche Zeitung: “I don’t share the idea that we will have fewer worries and restraints if Greece gives up the euro,” he said. “It would fix the idea in heads that the euro is not irreversible,” he added.
Athens still claims that the first installment of € 300 million due to the IMF on Friday will be made if, that is, an agreement with the creditors is concluded. The EU Economy Commissioner Pierre Moscovici said the talks were making progress, including on thorny issues such as pension reforms. Commissioner Moscovici also stated that the issue of Greek debt relief would only be discussed following what that Greek government repeatedly called a bridge agreement to release €7,2 bn in frozen aid. Over the last few weeks, Athens has stated it is now seeking “a package deal.”
The ECB’s top banking supervisor, Daniele Nouy, stated today that Greece’s banks remain solvent despite deposit outflows and the government’s pressure for liquidity.
On Sunday, in an article on the website of French daily newspaper “Le Monde,” the Greek PM blamed the uncompromising approach of the EU, the European Central Bank and the International Monetary Fund (IMF) for five months of fruitless negotiations. It is rumored that the IMF has the toughest stance in negotiation, demanding pension cuts and opposing any restoration of collective wage bargaining.
http://www.neurope.eu/article/athens-has-made-its-offer/