Athens, June 18, 2015/ Independent Balkan News Agency
New mediation of the EU president to close the agreement with its lenders
By Spiros Sideris
Greek Prime Minister Alexis Tsipras and the president of the European Commission Jean-Claude Juncker had a telephone conversation Wednesday that lasted ten minutes.
The new mediation the president of the Commission Jean-Claude Juncker was expected from the morning of the same day according to euro2day.gr information that were confirmed by Brussels.
The information indicated that the mediation of Junker would be a telephone communication between the two policies.
The proposal of the Commission remains on the table and it is up to the Greek side to bring the alternative measures that would bridge the gap.
The same sources claim that Juncker is convinced that if the Greek side agreed to a compromise, then he will manage to convince the rest of the eurozone. At this point, “if the EU finds a solution, then the IMF will be forced to agree or become isolated”, he says.
Junker also reportedly had a telephone conversation with François Hollande and Angela Merkel Tuesday in an effort to find a solution to the Greek problem
According to information, up to today, things are as follows:
– If Greece further cuts military spending by 200 mil. euros to 450 million euros annually, accepts a reduction in high supplementary pensions, proceed with the issue of combating cartels in the market for goods and agrees to postpone for a few months on collective employment contract issue, then the lender’s demands on VAT and the remaining insurance might be circumvented. The European Commission shares the view that the restructuring of social insurance should be done after studies on the matter have been completed. If early retirements are halted, then the rest can be resolved in the autumn.
– Twelve members of the Eurogroup are now against any favorable solution to the Greek issue. Yesterday at the meeting of five presidents in Brussels the matter was not discussed in depth, thus the ‘gap in the negotiations’ remain. The President of the Eurogroup may take it upon himself to table a compromising proposal (worse than that of the European Commission), without anything, however, having been decided yet.
– Several countries are against an EU summit on Greece, as they want technical issues resolved before such a meeting. The issue will be clarified after the Eurogroup on Thursday.
– Certain circles in the EU and IMF see behind the negotiating strategy of Athens the role of Gianis Varoufakis. They argue that the minister who has contacts with the New York law firm that handles bankruptcy, advises the prime minister that Greece will get a better deal if it waits until the last minute. The argument is that the EU, fearing unrest in the bonds of the region, will back down. The same circles maintain that the decision not to pay the IMF was made after a study of the specific law firm, whose representative met with Varoufakis in April in the margins of the IMF congress.
– The risk of imposing capital controls is real as the impasse continues, but involves difficulties.
– In last week’s EuroWorking Group were examined adverse scenarios for Greece. From a default to a Grexit.
– There a plan for the debt and sources say that Tsipras has chosen take control of the issue. According to information, that involves a big elongation of existing loans and lower interest rates. But any reference on the subject at this stage cannot be much more than a repetition of the binding Eurogroup decision in November 2012.
– No Member of the EU is now prepared to accept that the country’s government that received so much help is in danger of blowing everything in the air for disagreements that those who are calmer see that can easily be overcome with a little goodwill. Of course there are those who do not eye the leftist government of Greece favourably, and of course there are those who consider that from the beginning Tsipras’ pursuit was the exit from the euro.