Thursday

20th Sep 2018

Greece running out of cash as talks continue

  • Greece needs to repay €3.2 billion to the European Central Bank this month (Photo: Brett Jordan)

Coalition partners in Greece have so far failed to agree the details of €11.5 billion worth of spending cuts required by international lenders to unblock more aid, just as a minister warned cash reserves are drying up.

The three-party coalition led by Conservative Prime Minister Antonis Samaras was set to meet again on Wednesday (1 August) and try to reach an agreement, after failing to do so in the past few days.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

Samaras had given reassurances to the troika of international lenders (the EU commission, the International Monetary Fund and European Central Bank) on Tuesday that the cuts will be laid out in detail by next week, Ekathimerini newspaper reports.

But Socialist leader Evangelos Venizelos - a former finance minister - opposes further cuts to salaries and pensions, for fear of further social unrest in the recession-hit country.

He is backed by the smaller Democratic Left party, which is also a coalition member. Venizelos would rather implement only €6.5 billion worth of cuts over the next two years and delay the rest for 2015-2016.

Any such deadline extension would mean extra money, with German politicians in recent weeks having repeatedly stated Greece needs to stick to the agreed terms or else leave the eurozone.

EU commission chief Jose Manuel Barroso, during a visit to the country last week, told Samaras in front of reporters that "words are not enough" and the only advice he can give is "deliver, deliver, deliver" on the promises made.

Meanwhile, a Greek deputy finance minister on Tuesday warned there is no time to lose as cash reserves are quickly drying up in the absence of the next tranche from the €130 billion bailout agreed in March.

"Cash reserves are almost zero. It is risky to say until when, as it always depends on the budget execution, revenues and expenditure," Christos Staikouras told NET television.

"But we are certainly on the brink, we did not receive the aid tranche we were supposed to and we have the pending issue of an ECB bond maturing on 20 August," he added, in reference to €3.2 billion Greece needs to repay to the European Central Bank this month.

Words are not enough, Barroso tells Greece

Greece must stop delaying reforms, EU commission president Barroso said in Athens while Greek PM Samaras called on EU politicians to refrain from negative comments, with sceptical statements emerging almost daily from Germany.

Greek PM to ask for softer bailout terms

Greek leader Samaras is to meet top EU leaders in a bid to negotiate a two-year deadline extension on bailout terms. But patience among eurozone donors is wearing thin.

Eurozone leaders to have series of Greece meetings

Eurozone leaders will this week begin a round of shuttle diplomacy focussed on debt-stricken Greece amid reports that Athens' deficit problems are greater than previously thought.

News in Brief

  1. EU-Arab League summit proposed for February in Egypt
  2. Stop 'migration blame-game', Tusk tells EU leaders
  3. McDonald's Luxembourg tax deal 'compatible' with EU rules
  4. Danish bank CEO resigns in Russia scandal
  5. Germany seeks to join EU's eastern energy club
  6. UK universities top EU in Chinese ranking
  7. Poland seeks 'Fort Trump' US military base
  8. EU stops Irish case after Apple pays €13bn

Opinion

Aid, migration and the next EU budget

Th next EU budget is the most pivotal opportunity to advance a vision for Europe rooted in human rights and that builds a Union that works for all its members.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  2. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  3. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  4. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  5. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  6. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  7. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  8. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  9. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  10. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  11. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  12. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want

Join EUobserver

Support quality EU news

Join us