Make or break week for Greece
German chancellor Angela Merkel was on Monday evening hosting an emergency mini-summit in Berlin over the Greek crisis due to accelerate efforts to reach a deal with Athens.
Christine Lagarde, Mario Draghi, François Hollande and Jean-Claude Juncker attended the crucial meeting amid uncertainty about Greece’s ability to repay its bills is culminating, with the IMF to hold a tough line, considering that Athens has already enjoyed very favourable treatment.
However, according to a Financial Times article, both the European Commission and the European Central Bank have insisted on more generous terms for Athens, in an effort to preserve Eurozone’s unity and the common currency together.
If a compromise is reached in Berlin, it will not be a“take it or leave it” ultimatum for Athens, but rather an outline to be presented to Alexis Tsipras, as Financial Times reported.
Officials indicated that the Commission paper is intended to highlight the principles needed for the creditors to reach a deal.
It has to be said that Greece and its creditors are divided on how hard Athens should handle public finances, as the left-led government has rejected the current arrangement which involved a target primary surplus.
Greece and its creditors are also far apart on issues such as the creditors’ demands for cuts in the pensions programme, public sector payroll reductions and labour market reform measurements.
Source: Financial Times