Greece will probably stay in the Eurozone but at what cost?

“We will do anything you want, but please open our banks next week, will you?” This could be what Alexis might as well be begging from Mario at the EuroSummit of last Tuesday. From left to right, Alexis Tsipras, Prime Minister of Greece and Mario Draghi, Governor of the European Central Bank (Council TVnewsroom, 07/07/2015)

The technical teams of the European institutions are now discussing the Greek proposal which was approved yesterday evening by SYRIZA’s governmental council and submitted to the institutions minutes before the deadline in order to have a final agreement at tomorrow’s Eurogroup. The fact that the Greek government has come up with a more professional and as close as it can get to the institutions’ proposal is facilitating things in technical but also in political level.

The German side expressed by its Finance Minister Wolfgang Schäuble revealed that the largest economy in the EU is open to discuss about a small debt restructuring in exchange of immediate deep reforms accepting the view of the International Monetary Fund (IMF). This statement comes at the most crucial moment where a mutual agreement sounds as the only way that will be beneficial for everyone.

But even if the final agreement is not going to refer to a potential debt restructuring, even in that case, the Greek government has been elected to remain in Eurozone and EU at all costs and sign it. The problem will be if the rest of European leaders have different opinion and don’t want to make a mutual deal. Thus, being unable to make the Greek government resign they are willing to further sink it to the bottom by forcing it to take further austerity policy measures.

Final proposal

This is the last and most critical discussions that are taking place between Greece and European Central Bank (ECB), the IMF and the European Commission. All sides are tabling this very moment to agree on all aspects of the three-year programme and the almost 12 billion euros structural reforms and measures to be taken by the Greek government late last night. Friday the 10th is the most crucial day since it will determine whether the agreement will be cut leading to a Eurogroup and a EU Summit this weekend or it will throw Greece out of the EU; to the abyss of bankruptcy and drachma printing.

The renewed proposal that was submitted by the Greeks is believed to contain similar to the institutions measures regarding VAT rates increase and early retirement rules which reveals the willingness of Greece to strike a deal now. The point that remains to be seen though is whether the EU leaders want to humiliate the Southern country by continuing the five-year austerity policy or they are prepared to practically aid by adding to its growth and prosperity. The latter can be achieved not only by fundamental reforms but by a debt restructuring as well.

Berlin plays down its strictness

Wolfgang Schäuble stated that Germany suddenly considers now a small debt restructuring, which is unprecedented taking into consideration his stance against Greece’s debt crisis but in line with the recent report published by the IMF. This report favors a Greek debt relief which is characterised as mandatory.

Thus, judging from the latest events on this issue, we can clearly see that Germany is slightly changing its attitude to the negotiations by leaning to the Greek side attempting to close the deal and keep Greece within the EU.

One of the things that the German politicians keep on shouting is that the Greek government is not implementing all the needed measures which according to them are going to revive the economy. The German Finance Minister told his Greek counterpart at the last Eurogroup that “Greece needs to implement reforms to win the trust of its eurozone partners” and urged him to “Just do it!”.

Greek government seeks political approval

Late last night, the Greek government submitted the proposal not only to the institutions but also to the Greek Parliament in order to be approved by the Committee and Plenary. This will be a very strong “negotiating card” in the hands of Alexis Tsipras who will show Brussels that the Greeks have the political will to proceed to structural reforms as soon as possible.

However, the Greek Premier is not going to move to a unilateral action before Saturday’s Eurogroup meeting where the Finance Ministers of the Eurozone will decide on the faith of Greece. Mr Tsipras wants just to make it clear that the Greek parliament will vote for the final agreement making it a law of state to implement all the measures included in it at once.

Just three days left; No Grexit is foreseen

There is no time left for Greece which made the last attempt to close the coveted deal for a financial package from the European Stability Mechanism (ESM) in order to cover its financial needs for the next three years.

It is now up to the institutions’ and leaders’ hands to decide whether the final proposal is adequate to prevent a Grexit or Greece will be the first country in Eurozone’s history to leave the bloc once and for all.

All the evolutions during the last 2 days reveal the willingness of both sides to reach a deal. From the resign of Yanis Varoufakis, ex-Finance Minister of Greece, to the by far better and closer to the institutions demands proposal of the Greek negotiating team, till the acceptance of a possible debt restructuring by Berlin.

All in all, a deal may come but it is not sure yet if it will help Greece overcome this long-lasting crisis since the measures that need to be implemented are harsh and painful for the lower and middle class people.

Thus, everything reveals that there is not going to be a win-win situation after all and the Greek citizen is once more going to be the one to lose from all this mess.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Refugee crisis update: EU fails to relocate immigrants from Greece and Italy

Gender disparity in salary and promotion in medicine: still a long way to go

Financial Transaction Tax: More money for future bank bailouts?

MEPs propose measures to combat mobbing and sexual harassment

The EU Parliament endorses tax on financial transactions

Camino de Santiago – a global community on our doorstep

Fighting for minds of youth in Latvia

EU-US to miss 2015 deadline and even lose Germany’s support in TTIP’s darkest week yet

Mental Health Policy, a significant driver for growth

Can China deal with climate change without the U.S.?

Where are the charities in the great Artificial Intelligence debate?

Who is culpable in the EU for Ukraine’s defection to Russia?

Security Union: political agreement on strengthened Schengen Information System

Women in video games: ‘Accept it, or don’t buy the game’

Trade wars won’t fix globalization. Here’s why

EU to Telcos: Stop Mergers and Acquisitions but please help me urgently with 5G development

Greece did it again

EU Commission: Growth first then fiscal consolidation

Catalonia secessionist leader takes Flemish ‘cover’; Spain risks more jingoist violence

Palestinian Bedouin community faces demolition after Israeli court ruling, warns UN rights office

Ukrainian civil war: Is this the beginning of the end or the end of the beginning?

Egypt urged to free prominent couple jailed arbitrarily since last June: UN rights office

At global health forum, UN officials call for strong, people-focused health systems

Tougher defence tools against unfair imports to protect EU jobs and industry

An Easter Special: Social protection of migrants in Europe as seen through the eyes of European youth

Social Committee teaches Van Rompuy a lesson

It’s Time to Disrupt Europe, Digital First

Why the 33,000 staff European Commission did not have a real contingency plan for the refugee crisis?

Preparing for developing countries the ‘Greek cure’

Bertelsmann Stiftung @ European Business Summit 2014: Transatlantic Free Trade Agreement (TTIP) needs balanced approach

Commission facilitates the activities of ‘merchants of labour’

European Commission: Does Apple, Starbucks and Fiat really pay their taxes?

Snowden is the “EU nomination” for this year’s Oscars

France sneaks into the Geneva US-Iran talks to claim its business share in Tehran

More answers from Facebook ahead of Parliament hearing today

Entrepreneur India Convention 2016: Bringing together Entrepreneurs, Investors, Startups and SMEs

How Greece was destroyed

China-EU Special Report: Chinese Premier Li Keqiang endorses China’s big investment on Juncker’s plan at 10th China-EU Business Summit

AIDEX 2015: Humanitarian Hero Award Winner Announced

Is there a way out of the next financial crisis? Can more printed money or austerity save us all?

UN chemical weapons watchdog adds new powers to assign blame, following attacks

Cyber defence: MEPs call for better European cooperation

New skills agenda for Europe needs real investment

Statement by the Brexit Steering Group on UK paper on EU citizens in the UK

The EU banking union needs a third pillar guaranteeing deposits

Is sub-Saharan Africa ready for the electric vehicle revolution?

New identity cards deliver recognition and protection for Rohingya refugees in Bangladesh

EU to pay a dear price if the next crisis catches Eurozone stagnant and deflationary; dire statistics from Eurostat

OECD: Mind the financial gap that lies ahead

Young students envision turning Europe into an Entrepreneurial Society

Berlin cannot dictate anymore the terms for the enactment of the European Banking Union

EU Commission accuses Germany of obstructing growth and the banking union

What can stop the ‘too big to fail’ bankers from terrorising the world?

COP21 Paris agreement: a non legally-binding climate pact won’t stop effectively global warming while EU’s Cañete throws hardest part to next Commission

Europe moulds global defense and security chart given US new inward vision

Why do medical students need to go abroad to become a doctor in 2017?

Eurozone to enter the winter…

Ideology is the enemy of growth

German opposition win in Lower Saxony felt all over Europe

Catalan Pro-Independence vote: how many hits can Brussels sustain at the same time?

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s