Étiquettes
As head of the biggest country contributor to Greece’s 240 billion-euro ($268 billion) rescue, Merkel stepped in to unblock the stalemate at finance minister level as European Central Bank President Mario Draghi called for a “strong agreement” to resolve the deadlock.
“Everyone is working — whether in the bilateral or trilateral telephone talks that the French president and I are leading — to help reach a conclusion within the agreed timeframe for the completion of the program,” Merkel said at press conference in Berlin on Wednesday. “We’re working on that with high intensity.”
Weeks of antagonism and missed deadlines have given way to a greater urgency to decide the fate of Greece. The country has four payments due to the International Monetary Fund in June while its existing bailout expires this month. Greek Prime Minister Alexis Tsipras will meet European Commission President Jean-Claude Juncker this evening to discuss the next steps.
‘Days, Hours’
The euro was up 0.9 percent against the dollar after rallying on Tuesday amid optimism about a Greek deal, gaining 2 percent. Greek stocks and bonds advanced, with the Athens Stock Exchange index gaining 4.2 percent. Yields on two-year notes fell 118 basis points to 22.8 percent.
Merkel met with Draghi, Juncker, IMF chief Christine Lagarde and French President Francois Hollande in Berlin on Monday night to precipitate an accord. Creditors then agreed on a new document designed to avert a default and end the impasse.
Hollande said in Paris on Wednesday that an agreement is “several days away, maybe several hours away” from completion. Asking too much of Greece would hurt the economy, while asking too little might hurt the euro region, he said at the Organisation for Economic Cooperation and Development.
No Ultimatum
While stopping short of an ultimatum, it puts the onus on Greek Prime Minister Alexis Tsipras’s government to shelve some election promises or jeopardize the country’s euro status.
Sticking points in the talks have included budget measures, pension reforms and changes to Greece’s labor laws, with Tsipras and his Syriza party talking about red lines.
Greece needs an agreement that fosters economic growth and social fairness, though is “fiscally sustainable,” Draghi said at a press conference in Frankfurt to discuss monetary policy. It needs to be strong “in design and implementation.” He said the talks were in a state of flux.
Tsipras said he will press creditors to be realistic about what his country can accept as they prepare to deliver the final proposal for a financial lifeline.
“I will explain to Juncker that today, more than ever, it’s necessary that the institutions and the political leadership of Europe move forward to realism,” Tsipras said in a broadcast statement in Athens before traveling. He said there had been no feedback on the Greek proposal.
Groupe Gaulliste Sceaux 