Eurozone finance ministers on Wednesday morning reached, after eleven hours of discussions and negotiations, a compromise accord between Germany and the IMF over lightening Greece’s debt, European and US media widely report, many of them – such as Diena or Berlingske Tidende – seeing the agreement as a breakthrough or a success – something Eurogroup President Jeroen Dijsselbloem considers as well, Publico, and some other media, note. With Greece being granted €10.3 billion (the first tranche to be paid in June), European finance ministers have found a temporary solution to buy some time for the ongoing disagreement between the ministers and the IMF about the sustainability of the Greek debt, Het Financieele Dagblad notes, and the debt will be eased as of 2018, ilsole24ore.com reports.
The IMF, the WSJE reports, agreed in principle to rejoin the Greek bailout effort this year with new loans; in return, Germany and other eurozone countries pledged to restructure Greece’s rescue loans in 2018 “if…needed.” Greek media such as Naftemporiki highlight satisfaction within the Greek government, while other media speak of stability. European Council President Donald Tusk spoke of a strong message of stability for Greece, for Europe and for the global economy, Greek media report, while Italian Economy Minister Padoan said it was an “important signal” for Greece and for financial stability, Corriere della Sera says. The lightening of the Greek debt will come in three stages, the first in 2018, so as not to influence elections in Germany, Corriere della Sera notes, as several German media and observers remain quite critical of the agreement, and of Greece.
For NDR’s Wolfgang Landmesser, who criticises the Greek government for delaying reforms and harming the country’s most vulnerable people, Greece will continue to depend on the support of its partners. Eric Bonse critically notes, in Die Tageszeitung, that Germany is the main hindrance preventing a relaxation of the situation in Greece, arguing, though, that no problem has been solved by the Eurogroup. This new deal, Eric Bonse points out, is based on the “unrealistic”assumption that Greece will achieve an “enormous” budget surplus every year. “No one should give in to illusions” over the Eurogroup’s new deal, as future negotiations will remain “laborious and risky,” Jörg Münchenberg warns on Deutschlandfunk.
Writing in the Wall Street Journal Europe, Richard Barley says that while the Greek financial crisis is far from resolved, for now at least, the normalisation of relations is welcome. What is more, the Eurogroup accord over Greece could pave the way for the ECB deciding to accept Greek state bonds as collateral for normal bank financing operations, Il Sole 24 Ore reports. “Athens accord paves way for further ECB loans,” a FT headline reads, stressing that eurozone central bankers are looking into rehabilitating Greece’s banking system. Greece, Het Financieele Dagblad comments, may experience some relief when the ECB accepts Greek state bonds as security for bank credits.
©europeanunion2016
