Greek Development Plan: Agreement between government and institutions

Greek Development Plan: Agreement between government and institutions

The Greek government reached an agreement with the institutions over the Development Plan, according to well-informed sources of “IBNA”. According to the plan, both the collective agreements and the increase in the minimum wage will take centre stage after August 20. The same sources reported that the institutions formally approved the Greek-inspired plan last Friday, so the government intends to send this text to the Parliament after the technical agreement on the fourth evaluation, which is expected to take place during the Eurogroup on May 24.

IMF-Germany debates about debt

Meanwhile it looks like no agreement has not been reached yet between Germany and the IMF. According to sources, the IMF is reported to believe that Berlin maintains its rigidity in alleviating the Greek debt, as it asks one way or another its connection to the prerequisites. According to credible sources, the head of the European department of the IMF, Poul Thomsen has said that there is not much time, as there should be an agreement by May 24 -or June 1st at the latest- so that the Fund gives his approval for the Greek programme. However, discussions will continue among all sides so as to reach a solution involving them all, with the landmark being June 21, or July 12 (the next Eurogroup).

Besides, yesterday there were talks among the most important “players” within the EWG, which focused on alleviating the Greek debt, as Poul Thomsen was also found in Brussels. Progress in Berlin-Washington talks on the sustainability of the Greek debt is low, while Berlin’s attitude has become harder in terms of conditions linked to debt relief measures. In any case, government sources reported that this agreement could not be postponed.

The prerequisites

Based on has been said already, the weight of the negotiation falls on the “shoulders” of the completion of the 88 prerequisites from the Greek side, as the heads of the institutions will meet with the Greek ministers tomorrow (Wednesday) for a final round of negotiations.

Right now a technical agreement by May 24 is something feasible while all prerequisites will have been completed by June 15. In a way, this takes Germany’s argument for linking the prerequisites with the further alleviation of the Greek debt off the table…. / IBNA