This time it took three meetings of the Eurogroup, but Europe has once again what everyone agrees that does very well: at the last minute, make some time to later be able to resolve the problem. In this case, may have been over four months at the most benign scenario, or just three days, in the worst case scenario.
For now, what was agreed at the end of the Eurogroup meeting on Friday was an extension of the financing agreement between Greece and its partners in the euro zone for another four months, ie until the end of June, subject to acceptance of the list of measures and structural reforms that the Greek government will have to present in Brussels as early as next Monday.
At the conference following the meeting, the President of the Eurogroup, Jeroen Dijsselbloem, said he was obtained a “very positive” and that “this was an important step to rebuild trust between the two parties.”
The main steps for the agreement were given even before the 19 ministers from area Finance euro (and the representatives of the European Commission, IMF and ECB) is sentarems in the same room. Dijsselbloem met in different rooms with the Greek finance minister, Yanis Varoufakis, and the German finance minister, Wolfgang Schäuble, to try to bring the positions of those who are most clearly the two great actors in this debate.
From this effort came out a text in which the two were able to agree and which was then presented to other ministers at the Eurogroup meeting. Despite the objections of some actors, including Spain and Portugal, the agreement was signed.
With careful not to use the words “program” and “ troika ” predicts the loan to Greece and the conditions attached to them remain in force four months beyond the current limit of 28 February. The release of the tranche that has yet to deliver depends on a positive evaluation of institutions that make up the troika and European partners, with however the flexibility to accept that the targets for the primary budget surplus to be reviewed and that Greece now submit a proposal itself measures and structural reforms that want to implement.
A more complete and more details will be made assessment by the end of April, so that the money can get to Athens .
By the end of June, the new date for the end of the loans will have to be agreed to a new understanding of longer term between Greece and its European partners. The readings were made of the agreement varied greatly according to the players.
Wolfgang Schäuble made clear that only signed the document because Greece gave way. “The Greeks will certainly find it difficult to explain this agreement to their constituents,” said, insisting recalled (to their own voters) that, “while the program is not completed successfully, there will be no payment.”
defeats and victories Yanis Varoufakis
drew quite different conclusions. “It took three eurogrupos to turn the page – in Greece and Europe. The Greek finance minister pointed out that with this agreement, was returned to Greece “the freedom to make their own choices”, as it will, from this end-of-week, “become the co-author, in with institutions of the measures they think is accurate. ”
In its initial position before the start of this series of three meetings of the Eurogroup, Greece was forced to compromise on various topics. In practice, the conditions that had been taken over by the previous Greek government continue to be the starting point for negotiation. Athens can make changes to suggestions, but they will be evaluated by the European Commission, the IMF and the ECB, according to the principle that must be compensated financially, not to put fiscal and competitiveness objectives of the economy concerned. That is why measures such as increasing the minimum wage will, Varoufakis said, to negotiate a future “recovery plan” to be applied after the end of the current loan.
In addition, instead of the six extension desired months, were given only four months, which puts the end of the loan term before the massive debt repayments that are planned for July and August.
Then, in a clear proof that the trust of others countries in the new Greek government is far from assured, it was decided that some EUR 10 billion that were held in Greece to capitalize their banks returned to the European stabilization fund. “It’s to ensure it is not used by the state,” said Dijsselbloem.
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