Friday

28th Apr 2017

Greek PM to ask for softer bailout terms

Greek Prime Minister Antonis Samaras is next week meeting top EU leaders in a bid to negotiate a two-year deadline extension of the current bailout terms due to the worsening recession.

But patience among eurozone donors is wearing thin.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

  • Drachma banknote - the risk of a greek euro exit is being openly talked about as patience wears thin (Photo: Tonton Bernardo)

Samaras is due to receive Eurogroup chief Jean-Claude Juncker in Athens on 22 August, after which he will travel to Berlin and Paris to meet Chancellor Angela Merkel and President Francois Hollande to lay out why Greece needs two more years to meet the agreed terms, Greek daily Ekathimerini reports.

According to internal documents obtained by the Financial Times, the €11.5 billion worth of spending cuts the government is still struggling to cobble together would be spread over four years until 2016, instead of the 2014 deadline that is currently expected by Greece's lenders.

In order for the plan to work, Greece would need an extra €20 billion to support the budget as the annual deficit reduction in 2013-2014 would be smaller than planned.

But Athens would not seek extra money on top of the €130 billion bailout agreed in March, FT reports, and instead would ask for its repayment of the first bailout it received in 2014 to be postponed until 2020.

In support of his plea, Samaras is likely to invoke the worsening recession - 6.2 percent of GDP according to the latest Eurostat figures published on Tuesday - and its record unemployment rate of over 23 percent.

"The deficit reduction demanded for the period 2013-2014 is excessive. An overdose of austerity is self-defeating," said Iannis Mourmouras, the prime minister's chief economic adviser, according to the FT.

But whether his case will be heard in the German chancellery is doubtful, as leading coalition politicians in recent weeks have floated the idea of a "manageable" Greek euro-exit, a scenario even Jean-Claude Juncker confirmed.

The Greek government is struggling to get by on the first tranche of the €130 billion bailout agreed in March, as the second one is pending a troika report and has been delayed amid political turmoil in Athens and two successive elections.

On Tuesday, it managed to raise a record of €4 billion from its banks - also propped with bailout money - so that it can repay the European Central Bank (ECB) a €3.2 billion debt in bonds maturing on 20 August.

The fact that the ECB refused to extend the deadline on the debt repayment is also an indicator that patience among Greece's creditors is running out.

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.

Greece running out of cash as talks continue

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

Eurogroup makes 'progress' on Greek deal

Eurozone ministers endorsed an agreement in principle between the Greek government and its creditors over a new package of reforms. But talks on fiscal targets and debt could still block a final agreement.

New anti-trust complaint looms over Microsoft

At least three security software companies “met several times” with the European Commission to complain about Microsoft’s alleged abuse of its market position. A formal case could follow.

Commission stops German-British stock merger

The decision to block the merger of the London Stock Exchange and Deutsche Boerse was expected, as negotiations between the parties broke down a few weeks ago.

SMEs lack support in EU financial plan

The European Commission's plan for a capital markets union is said to be aimed at small and medium-sized enterprises, but many could end up being left out in the cold.

New anti-trust complaint looms over Microsoft

At least three security software companies “met several times” with the European Commission to complain about Microsoft’s alleged abuse of its market position. A formal case could follow.

Investigation

MEPs oppose EU agency to prevent Dieselgate II

The European Parliament said on Tuesday that there should be more EU oversight on how cars are approved, but stopped short of calling for an independent EU agency.

News in Brief

  1. EU has no evidence of NGO-smuggler collusion in Libya
  2. Poland gets 'final warning' on logging in ancient forest
  3. Commission gives Italy final warning on air pollution
  4. Romania and Slovenia taken to court over environment policies
  5. Report: EU parliament says FN jobs cost €5mn
  6. Turkey suspends 9,000 police officers
  7. May hosts Juncker at Brexit dinner
  8. 700,000 people granted EU asylum

Stakeholders' Highlights

  1. ECR GroupSyed Kamall: We Need a New, More Honest Relationship With Turkey
  2. Counter BalanceParliament Sends Strong Signal to the EIB: Time to Act
  3. ACCARisks and Opportunities of Blockchain and Shared Ledgers Technologies in Financial Services
  4. UNICEFRace Against Time to Save Millions of Lives in Yemen
  5. Nordic Council of MinistersDeveloping Independent Russian-Language Media in the Baltic Countries
  6. Swedish EnterprisesReform of the European Electricity Market: Lessons from the Nordics, Brussels 2 May
  7. Malta EU 2017Green Light Given for New EU Regulation to Bolster External Border Checks
  8. Counter BalanceCall for EU Commission to Withdraw Support of Trans-Adriatic Pipeline
  9. ACCAEconomic Confidence at Highest Since 2015
  10. European Federation of Allergy and Airways60%-90% of Your Life Is Spent Indoors. How Does Poor Indoor Air Quality Affect You?
  11. European Gaming and Betting AssociationCJEU Confirms Obligation for a Transparent Licensing Process
  12. Nordic Council of MinistersNordic Region and the US: A Time of Warlike Rhetoric and Militarisation?

Latest News

  1. EPP group frustrated with Orban
  2. Verdacht gegen Russland bezüglich Macronhacking
  3. 'Serene' EU warns UK against Brexit 'illusions'
  4. EU telecom watchdog plan dead on arrival
  5. Russische Fake-News überschwemmen die sozialen Medien Frankreichs
  6. EU agency stuck with London rent bill
  7. EU anti-fraud office ditches Martin Schulz probe
  8. Commission launches bid to make Europe social