Most European media comment on the ongoing negotiations between Greece and its creditors over a potential third bailout, reporting that talks progressed significantly this weekend. Greek officials said they discussed the economic overhauls and budget cuts the government would need to complete to clinch a third loan package of up to €86 billion and secure the first tranche of aid from the bailout.
However, Efimerida ton Syntakton and Skai TV reveal that discussions regarding the increase of the age retirement limits and the rest of the changes in the pension system have been postponed. All media report that following this weekend’s talks, Greek and European officials said they were discussing a draft memorandum. Greek media widely comment on the matter, outlining that the Greek government will have to present its response and comments within the next 48 hours. Indeed, the government aims to complete the negotiations with the creditors by Thursday in order to receive the Eurogroup’s approval by 15 August.
Most media report that in such a case, the Greek and eurozone national parliaments are expected to ratify the programme, thus enabling the disbursement of the first tranche of aid to cover Greece’s obligations to the ECB. “We are in the final stretch,” said Economy minister Giorgos Stathakis this week-end, quoted by Luxemburger Wort. But according to several EU media, Finland could stay out of a planned third bailout deal for Greece. Taloussanomat and De Telegraaf quote Finland’s Minister for Foreign Affairs Timo Soini, sceptical about the rescue package, commenting that “this is not going to work.”
In an op-ed in Berliner Zeitung, Thomas Schmid writes that the threat of a Grexit is not over, as even if Greece fulfils all the requirements and makes the necessary cuts, its debt as percentage of GDP will rise from 175% to 200% within two years, IMF estimates show. An El Economista editorial notes that Greece’s difficulties have not yet come to an end as member states can disagree with the outcome of the negotiation, the IMF can refuse to cooperate, or the Greek political instability can have consequences on the deal.
The Financial Times comments on Germany’s position during the talks, reporting that Berlin is facing isolation as Greece is getting closer to an agreement. While La Stampa writes that German Finance Minister Wolfgang Schäuble and a part of Germany’s Bundestag are opposed to the conditions for a memorandum of understanding with Greece, Les Echos comment that Germany is rather in favour of a new bridging loan in order to negotiate a better plan with Athens. The Telegraph quotes Finance Ministry officials as telling Germany’s Süddeutsche Zeitung magazine that “it is better to negotiate for two or three weeks longer and then have a sensible programme … a further bridge loan is better than just a half-finished programme.”
Meanwhile, some Greek and Italian media also note that Fraport, the German company that runs Frankfurt airport, is once again seeking to buy up airports on 14 Greek islands, when they are privatised. In the meantime, Greek media, Les Echos and Die Presse, write that austerity measures in Greece have caused a rift within the Syriza coalition, possibly resulting in early elections in September or October.
©europeanunion2015
