The Prime Minister of Greece, Alexis Tsipras,launched an attack on the IMF for rejecting Greek reform proposals ahead of talks with the three institutions later today. The Greek negotiating team comprising of Ministers Tsakalotos and Papas will remain in Brussels for the duration of the week.
Whilst on Monday the Eurogroup welcomed the Gree proposals, the IMF and the European Commissions are now in disagreement. Athens has reportedly put on the tablean €8 bn proposal founded on new taxes on the wealthy and businesses, VAT increases and cuts in defense spending. Athens insists the ‘red line’ of pensions remains largely untouched. The IMF objects both on the taxation strategy and on the nature of the budget cuts.
Meanwhile, Prime Minister Tsipras is up against domestic resistance from his own members of parliament as well as his coalition partner, ANEL (Independent Greeks), who are strongly reacting to the measures as described in a draft agreement leaked to the pressyesterday. Prior to leaving for Brussels today, he was receiving members of the Party’s executive committee, coalition partners and cabinet Ministers. The key to passing the deal through the Greek Parliament appears to be the solid commitment by the three creditor institutions to an endgame that will address both the structure of the debt as well as short and medium term refinancing issues.
Markets dipped this morning in fear that the EU summit on Thursday will fail to come up with an agreement. Mr. Tsipras noted on the destructive position of the IMF that “either they do not want an agreement, or they are serving specific interests in Greece.” The Prime Minister noted that the IMF has never before, in Ireland or in Portugal, taken a similar position that breaks ranks with the other creditors. Tsipras recently accused the IMF of “criminal responsibility” for Greece’s five years of austerity-driven woes.
Greece’s bailout program expires on June 30. Athens needs to meet a 1.5-billion-euro IMF payment the same day.
http://www.neurope.eu/article/the-imf-breaks-ranks-from-greeces-creditors/