The eurozone finance ministers were discussing Greece’s latest economic reform plans aimed at getting another – the third – badly needed bailout from the European Union.
EU officials indicated ahead of the meeting Saturday that agreement would be reached by the end of the weekend to keep Greece afloat, but they did not expect the talks to be easy.
“We are not there yet, both on substance – there is still a lot of criticism on the proposals, on the reform side, on the fiscal side and there is of course a major issue of trust,” Dutch Finance Minister and Eurogroup chair Jeroen Dijsselbloem said.
Hard line
German Finance Minister Wolfgang Schaeuble, whose country is Greece’s largest creditor, has taken a hard line on Greece over recent months.
“We will definitely not be able to rely on promises,” Schaeuble said. “We are determined to not make calculations that everyone knows one cannot believe in.”
He did not hang back from blaming Greek Prime Minister AlexisTsipras’ radical left Syriza party for the current crisis.
“The problem is that that there was a situation at the end of the year that was very hopeful, despite all the skepticism of previous years, and that this was destroyed in an incredible way in the last days and hours,” Schaeuble said.
However, the European Commission, European Central Bank (ECB) and the International Monetary Fund (IMF) told eurozone governments after a review of Tsipras’ proposals that there was sufficient basis to start negotiating conditional loans for the country.
IMF Managing Director Christine Lagarde struck a conciliatory tone upon arrival at the Eurogroup meeting.
“I think we are here to make a lot more progress,” Lagarde said.
Greek approval
The Greek parliament approved the Athens government’s new proposals early Saturday. The lawmakers met in a session that stretched well past midnight after hearing a personal appeal from Tsipras.
He told parliament he hopes Greece is at the end of a difficult battle.
Tsipras also compared the last several months of tough negotiations with the EU as a war in which his government has been fighting for the rights of the Greek people.
“We will make it,” Tsipras predicted. “We will make it not only to stay in Europe but also to live as equal partners with dignity and pride, seeking our rights in Europe and opening up a path for the other nations in Europe.”
The new Greek proposals include more pension cuts and tax hikes — demands that the EU finance ministers have been making of Greece and which voters rejected in last Sunday’s referendum.
They also include Greek insistence for a debt restructuring by the International Monetary Fund.
$60 billion
Greece is asking the EU for $60 billion to be spread out over three years.
All 28 EU leaders will meet in an emergency summit Sunday to decide whether to accept the Greek government’s economic proposal.
Some of those leaders have said this is absolutely Greece’s last chance to satisfy their demands. They have been frustrated by what has so far been Athens’ refusal to carry out more austerity.
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