(I am political blogger Philippe Blankert and domain name owner of http://www.xn--jxafi7ax1b.gr/ = drachma.gr in Greek. For sale, email internetavenue@outlook.com )
OECD meeting
The Brussels talks will see Greece plead its case to the Eurozone’s 18 other members, most of whom are loath to give Athens leeway on its mountain of debt, which most analysts believe will never be repaid.
Varoufakis will ask his counterparts to forget the current €240 billion (Dh997.5 billion, $270 billion) bailout, in favour of a new arrangement that would take the plight of ordinary Greeks into account.
The Greek proposal would see Athens stick to 70 per cent of its bailout commitments but overhaul the remaining 30 per cent. Greece also wants a debt swap that will focus on economic growth.
Crucially, the government wants a bridging loan until September to buy time to hammer out new reforms.
At the same time it insists on raising the minimum wage and ditching an unpopular property tax, abandoning key reforms demanded by lenders of previous Greek governments.
Tsipras announced plans on Wednesday to work on his programme of reforms with the OECD — the economic club of rich nations that has criticised the EU’s embrace of austerity.
The programme will be based “not on what was previously decided but on popular mandate,” he told a news conference after meeting Angel Gurria, head of the Organisation for Economic Cooperation and Development.
Greece was first bailed out in 2010 and Athens is still subject to inspections by its troika of creditors — the European Commission, International Monetary Fund and European Central Bank.
It’s over
On the eve of the talks, which will also include the head of the IMF, Christine Lagarde, and ECB chief Mario Draghi, Germany’s Schaeuble dismissed any proposal of ending the current programme.
“It’s over” if Greece doesn’t want to continue the aid programme on the current terms, Germany’s Schaeuble said.
The EU’s Economic Affairs Commissioner Pierre Moscovici said the existing bailout deal was “the anchor” on which discussions should be held.
Moscovici added that while the Greek people’s desire for change should not be “brushed aside” Athens should also be mindful of voters in other European countries suffering from rescue fatigue.
Greece on Wednesday raised €1.14 billion in three-month bonds, but rates were up and demand was down for the second time in a row for the new government.
Despite European leaders seeming to be at loggerheads, analysts said investors were still confident a deal will be reached.
“The markets don’t see a Greek exit as highly likely and certainly don’t think there’s a really negative outcome looming,” Mark Lister, head of private wealth research at Craigs Investment Partners Ltd, told Bloomberg News.
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