The Eurogroup agreed with Greece – Home | Deutsche Welle

The Eurogroup agreed with Greece – Home | Deutsche Welle

So, Greece saved. At this point, in fact, on the same conditions that existed in the past, in the last financial assistance program for the country. This is the result of which a press conference on Friday, February 21, announced the chairman of the Eurogroup Jeroen Deysselblum. According to him, the program of aid to Greece will be extended for another four months, until the end of June.

The head of the Eurogroup Jeroen Deysselblum

This is possible because the Greek Finance Minister Janis Varufakis official addition to the previously submitted request for an extension of the program complied with the conditions Eurogroup. “The authorities (Greece – Ed. ) today pledged to hold individual structural reforms”, – explained Deysselblum. According to him, the Greek authorities also agreed that they would not have to cancel the reforms and will not change the law so that it would prevent the achievement of a balanced budget, economic recovery and undermine the financial stability of the country.

Schaeuble has his

Thus, Greece recognized as lawful, including the requirements of the German Finance Minister Wolfgang Schaeuble (WolfgangSchäuble), which caused considerable controversy in Brussels. Fulfillment of the conditions will be monitored, as before, the representatives of the European Commission, the ECB and the International Monetary Fund (IMF). These three organizations – formerly called “troika” – the result will provide the Eurogroup final report.

Janis Varufakis

If it is positive, the Eurogroup will give the nod to the remaining tranches of the financial and payment of income on Greek bonds totaling 3.9 billion euros. Thus, the Greek government, despite his earlier statements, will not escape any harsh environment, nor cooperation with the “troika” of creditors. It is possible that in the next four months to begin negotiations on a third program of assistance.

Varufakis says the success of

After the meeting, Finance Minister Varufakis stressed that he yet achieved its main objectives. He notes that the structural budget surplus should no longer be as large as that initially required Eurogroup: the final declaration is no longer mentioned the figure of five per cent, which was scheduled for 2015.

In addition, Varufakis draws attention to what is now the present ruling coalition can develop your own list of needed reforms, which will be significantly different from the previous government approved a package of measures. With this list of representatives of the creditors (the former “troika”) will be made available as early as Monday, February 23. If the proposed reforms are approved, at the end of next week in the national parliaments, including in the German Bundestag, will vote for an extension until the end of June a program of financial aid to Greece.

hole in the budget remains

However, the financial problems of Greece will not disappear. Varufakis Minister acknowledged that “hole in the budget” remains, and this problem should be solved within the next weeks and months. With colleagues from the Eurogroup Varufakis plans to develop up to the end of June a new concept, which will allow Greece to the greatest possible social responsibility to get out of the debt crisis.

European diplomats hope that after such intense negotiations about the ending assistance programs, future consultation the new program will be more constructive. However, this policy of the ruling party and SYRIZA “Independent Greeks” will have to give up a number of his campaign promises.

The head of Germany’s Finance Minister Wolfgang Schäuble, who most harshly reacted to the new style of Greek politics, eventually expressed conciliatory tone: “We have tried to reach an agreement so that Greece was able to bring the situation under control, but we are at the same time take their responsibility seriously”.

As for the head of the Eurogroup Jeroen Deysselbluma, then, in his words for the negotiations he had lost confidence in the reliability of its partners: “We have taken the first step toward restoring confidence. As you well know, it is much easier to lose than to win back”.

Different interpretations arrangements

Varufakis left Brussels in a tense situation, warning that if Tuesday Eurogroup approves Greek proposals to reform the country, all the agreements lose their power. The head of the Eurogroup Deysselblum, in turn, stressed that all proposed measures Greece should have to budget neutral. If the Greeks are planning to spend more in one area, the other must be conserved. How SYRIZA intends to implement its promises to increase social benefits and raise the minimum wage – in Brussels remains a mystery.

Deysselblum once again made it clear that the agreement on aid to Greece will be extended in full. This means that it will also include a “memorandum of intent” – a long list of economic and financial policies, which agreed Eurogroup and the then Greek government in 2012. Janis Varufakis disagree, in his opinion, “memorandum” outlived its usefulness. It seems that the agreements reached in Brussels, still have room for interpretation.