All media comment on the Greek negotiations as Athens and its creditors are working at full speed in order to reach an agreement as soon as possible. Greece’s talks with creditors entered a new stage on Thursday as the International Monetary Fund withdrew from bailout talks. The IMF announced it withdrew its delegation from negotiations citing significant differences with the Greek side following another round of talks between Greek Prime Minister Alexis Tsipras, German Chancellor Angela Merkel and French President Francois Hollande.
The Financial Times and Efimerida Ton Sintakton comment that news of the IMF’s hardline stance towards Greece stood in stark contrast to an earlier mood of optimism that a deal could be reached. IMF spokesman Gerry Rice nevertheless indicated that a large gap remained to be bridged with Greece but made it clear that the IMF was not quitting the negotiations definitively. “There are major differences between us in most key areas,” he said, quoted in the Financial Times. Kathimerini notes that the IMF is not the only one that has retired from Brussels since Wednesday as the ECB’s representatives have also returned to Frankfurt.
Most media report that European Council President Donald Tusk, who met Mr Tsipras privately on Wednesday, claimed “we need decisions not negotiations now. It’s my opinion that the Greek government has to be, I think, a little more realistic.” According to Les Echos, François Hollande, Angela Merkel and Jean-Claude Juncker also told Mr Tsipras that it was time for him to live up to his responsibilities. Angela Merkel and François Hollande however told Mr Tsipras they will continue to work to prevent Greece from exiting the eurozone, Italian media report.
Most media indicate that “time is running out” for Greece, and Mr Juncker is said to be losing patience with the Greeks. “The people are now becoming impatient. I only am a human too, which is why I share their impatience.” The situation must be saved and “we are trying to push this process forward,” media quote Mr Juncker as saying. “There is no more room for gambling, there is no time for gambling,” Donald Tusk added. EC Vice-President Dombrovskis claimed in an interview with LTV-1 that “these talks are at the critical juncture.”
Indeed, the eurozone portion of Greece’s €245 billion bailout expires June 30, the same day it faces a €1.6 billion payment to the IMF that it won’t be able to make without a new aid transfer. “I’m a big fan of Greek tragedy, but now we really have to move on to a happy ending,” Commissioner for Economic Affairs Pierre Moscovici told French radio RTL. “Nobody wants Greece to leave the eurozone,” he added. The next Eurogroup, on June 18 should be decisive. Several Greek media imply that the IMF might not ratify any agreement that Greece and the European partners might reach that day. Many interviews and op-ed criticise the Troika’s tough stance.
In Les Echos, Lombard Odier’s strategist Stéphanie de Torquat considers that Greece has made great efforts over the past six years and that “from a financial point of view, [the country] is not systemic for Europe.” In an interview with Marianne, economist Thomas Piketty criticises the fact that European institutions want to make the Greeks pay and repent forever. Some articles warn that Mr Tsipras is in a strong position.
Le Soir‘s Béatrice Delvaux writes that Alexis Tsipras is in the exact same position as when he won the Greek elections, as he can negotiate on the basis of an agreement that he thinks is unacceptable by threatening with a Grexit. Meanwhile, US rating agency Standard & Poor‘s has downgraded Greece’s credit rating by another notch, Austria and US and Greek media report.
©europeanunion2015
