No huge breakthrough for Greece at trilateral meeting in Riga
French and German leaders want Greece to complete the bailout, but Greece is finding that the IMF is hard to please
The trilateral meeting between Prime Minister Alexis Tsipras,
German Chancellor Angela Merkel and French President Francois Hollande
on the sidelines of the EU’s European Council of EU leaders in Riga,
Latvia, concluded late on Thursday. The meeting, also attended by State
Minister Nikos Pappas and Alternate Internal Economic Relations Minister
Euclid Tsakalotos ran for two and a half hours. It took place behind
closed doors at the luxury hotel, beside the River Daugava, where the
German and French leaders are staying. Greek hopes had been pinned on
the meeting however progress was not as astounding as the Greek leftist
government would have liked.
Both Merkel and Hollande pledged that, if needed, they would push for a speedy solution to Greece’s financial woes, however a number of hurdles remain before a deal can be struck with all three of Greece’s foreign creditors from the European Council, European Central Bank and International Monetary Fund. The lack of convergence with the IMF over a development plan with Greece still remains an obstacle before the Gordian Knot of the country’s economy can be cut. There are still differences on changes to labor law, pension and VAT laws as well as on the primary surplus with the Greek government finding the IMF especially hard to please.
Tsipras presented the leaders of the euro zone’s two biggest economies with a long-term deal and both leaders understood the necessity of such an agreement. Despite pledges, there was little promised in the way of action.
Even so, a Greek official present at the meeting said: “We are closer to a deal. I was convinced that they don’t want an accident.” The meeting was constructive with all three leaders agreeing that there has been substantial progress with attention cast on issues that still remain open.
Tsipras is meeting with European Commission President Jean-Claude Juncker at 2.30 p.m. on Friday.
Both Merkel and Hollande pledged that, if needed, they would push for a speedy solution to Greece’s financial woes, however a number of hurdles remain before a deal can be struck with all three of Greece’s foreign creditors from the European Council, European Central Bank and International Monetary Fund. The lack of convergence with the IMF over a development plan with Greece still remains an obstacle before the Gordian Knot of the country’s economy can be cut. There are still differences on changes to labor law, pension and VAT laws as well as on the primary surplus with the Greek government finding the IMF especially hard to please.
Tsipras presented the leaders of the euro zone’s two biggest economies with a long-term deal and both leaders understood the necessity of such an agreement. Despite pledges, there was little promised in the way of action.
Even so, a Greek official present at the meeting said: “We are closer to a deal. I was convinced that they don’t want an accident.” The meeting was constructive with all three leaders agreeing that there has been substantial progress with attention cast on issues that still remain open.
Tsipras is meeting with European Commission President Jean-Claude Juncker at 2.30 p.m. on Friday.