Dangerous bargaining with risk of Graccident
Posted by newsroom
in Economy
May, 26 2015
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Author: newsroom
The Radical Left Coalition (SYRIZA) government is counting on the support expressed by German Chancellor Angela Merkel and French President Francois Hollande during their meeting with Prime Minister Alexis Tsipras on the sidelines of the European Council in Riga, Latvia. Both Merkel and Hollande had pledged that, if needed, they would push for a speedy solution to Greece’s financial woes and that they did not desire a Grexit.
Though unofficial, the assurance given by the two leaders, has given Greece hope that a deal with creditors is possible over the next ten days so that Greece can pay its installment to the International Monetary Fund on June 5. All up, the Greek government has three payments that it needs to make over the next month of approximately 1.5 billion euros.
Athens has pointed to the “threat” of being unable to make its debt repayments to creditors due to a lack of funds. It has stated that if there was a choice between paying public sector wages and pensions rather than debt it would choose the former.
On their side, creditors are also exerting pressure for Athens to make concessions so that it can pay off its debt. They point to the consequences that not making the IMF repayment would have on the Greek economy.
During Monday night’s meeting called by Prime Minister Alexis Tsipras to examine the course of negotiations, the discussions focused on the progress of talks with the assessment that a deal is within reach. The government examined what it wants to accomplish from an overall agreement. Greece does not believe that EU partners want a deadlock and hope that a viable solution with respect to the “red lines” set by SYRIZA can be achieved.