The head of the Eurogroup Jeroen Dijsselbloem said that is too late to extend an expiring aid program for Greece. He added that the institutions will consider a request from Greece for a new aid scheme only after a referendum in this country, announced on Sunday. New financial support for Athens may be subject to stricter conditions – pointed out the head of the Eurogroup.
This information is released after a teleconference of finance ministers of the euro area Tuesday evening, devoted to proposals for new aid program sent that day by the Greek government.
– The final closing date for extension of the Greek program was a weekend. Due to the parliamentary procedure could not extend the program on Tuesday – wrote on Twitter after talks Eurogroup Finance Minister Peter Kazimir Slovakia.
Letter Greek Prime Minister
The head of the Ministry of Finance of Finland Alexander Stubb wrote on Twitter that letter on Tuesday Greek Prime Minister Alexis Ciprasa contained three requests. – Extending the program or debt reduction is not possible – said Stubb. He then added: ‘request for a program from the European Stability Mechanism (ESM) is always considered through the normal procedures. “
Earlier on Tuesday, the BBC News website reported that Greece has asked for a two-year aid program worth 29.1 billion euros. The loans were used to cover Greece’s debt payments to the end of 2017. According to BBC News is “completely new” financial support have come from EMS, the proposals did not mention the International Monetary Fund.
The Greek government announced on Tuesday that Greece’s creditors sent a new proposal for an agreement. It was there for another two-year aid program for Athens, which was to serve regulating their external obligations and debt restructuring. Greek Prime Minister also asked the Eurogroup to the current program was extended aid, which expires Tuesday at midnight to prevent “technical insolvency” of the country.
Source: CNN Newsource / x-news
On Friday, Greece rejected the final proposal of the agreement with international lenders, which would unlock the last installment of the aid scheme in the amount of 7.2 billion euros. Cipras announced on 5 July referendum on the conditions for support, asking at the same time an extension of the current program. On Saturday, the Eurogroup rejected that request, while Greece has announced that it fails to repay maturing on Tuesday installment of the debt to the IMF, which in practice would be considered insolvent this country.
blow for the European Union?
The possible departure of Greece, the euro zone will not affect the European economy. Such sentences are experts who work for Radio Information Agency commented on the confusion surrounding the possible “Grexitu”. Some also point out that such a step would be beneficial for the economies of the EU.
– Greece’s financial troubles are no major impact on the European economy – says economist Dr. Arthur Bartoszewicz Warsaw School of Economics. Dr. Bartoszewicz is of the opinion that the stock market and exchange rates rather than react to the problems of Greece if the uncertainty of what this country can happen.
Source: CNN Newsource / x-news
Meanwhile here is that Greece remains in the euro zone and repaid its obligations seek, inter alia, European Commission President Jean-Claude Juncker and the head of the European Council, Donald Tusk. However, according to Arthur Bartoszewicza, they are not doing this because of economic concerns, but are struggling to survive idea of the European Union, Union which was to be together, which was to support and build long-term security for all.
Bartoszewicz was previously a guest of the morning debate on Polish Radio 24. As assessed currently hard to even talk about a possible exit by Greece controlled the eurozone, because both sides lack of willingness to compromise. Besides, taking into account the prevailing chaos, it is uncertain whether Greece and the EU will honor their commitments in the event of such a solution. – In my opinion, saying that anything can be controlled at any stage of this process, it is really a big challenge intellectually – he added.
“Important referendum”
In turn, the other guy PR24, Marta Makowska of the Center for International Initiatives noted that both parties are afraid of the consequences “Grexitu” but also try to play cards Greek exit from the euro zone. As noted, the consequences of such a step can be devastating, both for Greeks and for the European Union. The expert stressed that in this case the most dependent on a Sunday referendum on the agreement with international lenders.
– If Greeks vote against, it will be successful premiere Ciprasa and sets the tone for the extreme left-wing parties in other EU countries, that radical, hard attitude you something to ponder and destroy the existing order – Makowska said.
The Economist, Dr. Piotr Bujak rating conversation with IAR that the European economy is prepared for possible Greek exit from the euro zone. As explained, it changed the structure of Greece’s creditors are no longer large European financial institutions. Thus, says Dr. Bujak, insolvency of Greece did not hit the big European banks and will not lead to paralysis of the European financial system.
“A positive signal for investors”
The exit of Greece from the euro zone would be beneficial for the European economy. This view is shared by economist Dariusz Wozniak from the Higher School of Business in Nowy Sacz. Lack of will to cooperate with the countries of the eurozone from Athens undermines confidence in the single currency expert says.
– If there is no agreement and will be a “Grexitu” is the long term this is a positive signal to investors, because the European Union economy gets rid of the weak link – stressed. The possible bankruptcy of Greece should not be so very noticeable, because it is a small significant part of the euro zone – added the economist.
– the time scheduled for Sunday referendum on the agreement with the borrowers will not be of broader negotiations between the European Union and Greece. In the present situation simply does not have the field to talk – IAR said Dr. Peter Wawrzyk from Warsaw University.
“Risky move Ciprasa”
The expert estimated that Prime Minister Alexis Cipras announcing the referendum put everything on one card. According to Dr Wawrzyk any talks have now raison d’être, because the Greeks should not expect any new proposals from the European Union and the Community can rely on the fact that it was the Greek side broke off negotiations by announcing a referendum. – As a result of a return to talks can take place only after the result of the vote, regardless of what it will be – he added.
Source: TVN24 / x-news
The caller IAR drew attention to the tough stance of Prime Minister Ciprasa. However, in the opinion expert, taking into account the position of the Union, the activities of the Greek Prime Minister would rather scare away voters in other countries from supporting the Euro-skeptics. In the words of Dr. Wawrzyk, the leaders of the Commonwealth will always be able to show the example of Greece as an example of what conduct Anti-EU rhetoric and behavior. – They will say – look, count with what you meet when lodging place of those who do not want to talk with Brussels – he added.
IAR / PAP / aj
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