by
N. Peter Kramer
Greek officials were confronted with new measurements by the representatives of the quartet of lenders: the European Commission, the European Central Bank, the European Stability Mechanism and the International Monetary Fund.
Discussions stumbled on how to secure contingency measures asked by the lenders in case Greek finances fare worse than expected in the future. They want the Greek parliament to adopt a €3.6 billion package of new austerity measures that would be implemented only if Greece missed its primary surplus target for 2018, set at 3.5 percent of GDP by the bailout memorandum signed last year.
The quartet’s request for this contingency package goes completely beyond what was agreed by the eurozone leaders last July and written down in the bailout memorandum of understanding signed in August. That is why the Greek Prime Minister Tsipras, who always said he would do’ nothing more and nothing less’ than was agreed last summer, is trying to bring the discussion now back to the level were the agreement was signed, the Eurozone leaders.
The by the lenders blocked first review, which focused on pension and tax reforms with a result of €5.4 billion, would help Greece to face a €3.5 billion repayment in July. It would also open the way for a discussion on debt relief, one of Tsipras’ main goals.
Remarkable was the reaction of the President of the Socialists and Democrats, the second biggest group in the European Parliament, Gianni Pittella. ‘We cannot ask Greece to take additional measurements. This means that some ‘hawks’ want to kill Greece’, he said. May be it is better to call the hawks Pittella mentions straight away ‘vultures’!
