Saturday, February 21, 2015

Greece: after the agreement in the snatch, the count-down restarts – The Obs

Greece: after the agreement in the snatch, the count-down restarts – The Obs

Athens (AFP) – Alexis Tsipras little time to savor an agreement with the euro area it claims as a victory aware of the “challenges” that lie ahead, he must present within 48 hours a reform catalog to endorse the compromise and save some election promises.

After three rounds of tough negotiations in Brussels, Greece saw back the specter of a euro exit, and hopes to have ensured its survival budget by winning four months of additional funding until the end of June, but accompanied by the strictest conditions.

In a televised address Saturday, Prime Minister Tsipras estimated to have “won a battle”, swinging between the apology of an agreement that “leaves behind (him) austerity memorandum troika” and lucidity on the “long and difficult road” that awaits the country.

The results will be measured by the light of the reforms that the Greek executive must submit by Monday night to his creditors, now referred to as the “Institutions” (EU, ECB and IMF) – the word “troika” is banni- and on which the agreement will be approved or not, during a conference call of the Eurogroup Tuesday.

“I am absolutely certain that the list of reforms will be approved,” said Saturday the Minister of Finance Yanis . Varoufakis after the cabinet meeting devoted to the last meeting of the Eurogroup

He said the government should be provided to include some previously required steps: VAT increase, new cuts in retirement and continued deregulation of the labor market. This enables Athens is now present in “co reforms and destiny” rather than student submitted, according to Mr. Varoufakis

Some Greeks relativize as Alexandros Milonas, an official. The country “did not have a lot of flexibility,” but the agreement “in the right sense,” he told AFP

-. The cost of the reforms –

But there is no guarantee that Mr. Tsipras will stall the green light for the euro zone on the implementation of the most debated part of its program: increasing the minimum wage – that the government had set for 2016 – increase in small pensions, protection of foreclosures or stop privatization.

All these measures have a cost. However, in the agreement reached, Greece agrees not to legislate with a “negative impact on the budgetary targets, the economic recovery and financial stability.”

Especially as this compromise excludes the government could use some eleven billion remaining in the Greek banking stability fund for anything other than saving the financial system. Knowing that the euro area does not disburse the remaining money in the aid program (7.2 billion euros, of which 3.6 from the EU) before a second evaluation of the reforms, in April.

However, the EU has allowed Athens to achieving a primary budget surplus (excluding debt service) lower qu’iniatiallement want.

Any reform “that has no budgetary impact severe will be implemented, “said Saturday, Economy Minister Giorgos Stathakis. According to him, certain measures against poverty promised may also relate to the state (via the unpaid tax debt rescheduling) or be compensated by the expected revenue of the fight against tax evasion, corruption, and the reorganization of the administration.

The compromise reached in Brussels “gives time” to negotiate a new agreement with creditors before the end of June, said Mr Tsipras. To the Greek press, this is one of the achievements of the line taken by Syriza with the euro area.

According to Matthew Pigasse, head of Lazard to advise the Greek government on the debt restructuring, we must “leave time and oxygen” in the country.

radically different interpretation to the conservative German press that “Greece can bury his political dreams” (Die Welt) while tabloid Bild rejoiced a “success Schäuble,” the German finance minister, facing a Greece “bends.”

“The Greeks have nothing more to achieve. I am sure they will always have to give in, “predicted Daniel Gros, director of the Centre for European Policy Studies in the Italian press.

A return to the inescapable reality that the European Parliament President Martin Schulz: “you should not promise your constituents that you change all the next day is a dream, not reality.”



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