– We are ready for an aid program for Greece with serious reforms and financial support – said Donald Tusk. The last issue, which was difficult to solve, concerned the establishment of a special fund that would carry out the privatization of Greek assets. Its creation is to serve the repayment of debt of Athens.
Reactions to the agreement ws. Greece
Italian Prime Minister Matteo Renzi with reservations regarding the optimistic reaction in Brussels after the EU reached an agreement with Greece. As he said, “you can not treat everything like a derby between Angela Merkel and Aleksis Ciprasem, so triumphalist mood are not in place.”
According to the head of the Italian government, the agreement reached with such difficulty is committed to reforms in both Greece and the European Union. Renzi acknowledges that night that there was the risk that the Grexit, or exit from the euro zone Athens, fortunately at the last moment he took up common sense. Now everything depends on Greece.
The mood of the Greeks still bad
Black scenario for Greece receding, but the agreement did not calm the mood in Greece. Yes Bank chief economist at Societe Generale says Jaroslaw Janecki effects summit in Brussels.
Expert explains that the agreement reached improves mood in the European Union, but not in Greek society. He adds that the agreed conditions are similar to those which the Greeks rejected in a referendum, because the government in Athens will be a tough nut to crack.
Jaroslaw Janecki adds that the fact of reaching a settlement does not mean that the reform will be carried out in Greece. The expert points out that with such a situation occurred in the past.
Cipras: a difficult but necessary decision
Prime Minister of Greece provides that the agreement with creditors was necessary, but promises that the oligarchs pay for reform. Alexis Cipras said in Brussels that without reform plan would not have to avoid the collapse of the banking system. According to the head of the Greek government, the agreement provides an opportunity to return the country to the path of economic growth.
Alexis Cipras admitted that the implementation of the conditions to put creditors, will be difficult. However, according to him, the agreement provides for the restructuring of debt and money for Starting economy.
– The agreement is difficult, but avoided the removal of assets abroad. We have avoided a financial meltdown and the collapse of the financial system. In this hard fight to win, we managed to debt restructuring – Cipras added.
He added that the costs of reform will be distributed in accordance with the principles of social justice. “These costs also borne by those who have not yet paid,” – he said, indicate the need for “radical reforms to get rid of the old oligarchy”. In the latter case, there are no details. The debt restructuring is not mentioned other European politicians. From the beginning, was opposed ago in Berlin.
This will create a fund
As said the head of the Eurogroup Jeroen Dijssebloem agreement provides, inter alia, that Greece in the coming days will introduce some reforms. – The Greek parliament very soon will have to accept some reforms, which is to restore confidence in the whole process and among the Member States – Dijsselbloem said. He added that in the text of the compromise are also very specific guidelines as to which reforms must be strengthened: it is, among others, On the reform of product market, labor and others.
The head of the Eurogroup also said that in order to improve financing in Greece, a special fund will be created, powered by, among others, funds from privatization of Greek assets to reduce debt and recapitalize banks. The Greek parliament must now therefore to introduce part of the reforms and give formal approval to start negotiations on a new loan. Likewise, they must do some of the other euro area countries’ parliaments – which could take up to Friday. Then, the Eurogroup will take a formal decision on the opening of negotiations, which will be conducted by international institutions.
The Trust Fund was a moot point
Germany wanted to fund amounted to a value of 50 billion euros. Greece argued that the state only has assets to the value of 17 billion. The definitive findings were decisive talks in smaller groups: the head of the European Council, German Chancellor, the French President and Prime Minister of Greece, which took place during the last hour of the summit.
Reservations from Greece awakened earlier also the issue of the involvement of the International Monetary Fund on a new aid scheme. Under the agreement, the Heads of State or Government of the Eurozone have the condition the opening of negotiations with Greece on whether to next Wednesday, authorities in Athens will introduce some urgent reforms. This may include changes in the tax system, retirement, de-politicization of public administration and taken steps to privatization. Only on this basis, euro zone finance ministers will be able to give the green light to start negotiations on a new aid program.
Negotiations stuff in new loans at the end of the week
By the end of the week should be decided to start negotiations with Greece on new loans. He informed the head of the European Council, Donald Tusk in an interview with Polish journalists. First, however, Greece must prove that the reforms and austerity measures to which they committed were introduced. Yes Eurozone leaders agreed on a lasting almost 17 hours summit in Brussels.
First reform, then help
From the findings of EU leaders that Athens Wednesday will have to implement urgent reforms. With regard to changes in the tax system of restrictions on early retirement, as well as antitrust law.
Euroland expected to also accelerate the privatization process.
So alone was not enough reforms and savings plan, which the authorities in Athens have sent to Brussels. The leaders of the euro area require concrete actions and decisions. Only then, probably on Thursday, will give the green light to start negotiations on financial assistance.
Such preliminary arrangements were already in the first hours of the summit.
Greece: it will be pension reform plan
Yet on Monday, the Greek government has prepared a detailed plan for pension reform. This is the most complicated and painful of the reforms to which pledged in Brussels, Greek Prime Minister Alexis Cipras. Pushing through the changes in the pension system is one of the conditions for the Athens term financial assistance.
As reports from Athens Special Envoy of the Polish Radio Wojciech Cegielski, the Greek Ministry of Labour announced that by the evening pension reform will be ready. The government wants to significantly reduce the number of people who will be able to go on early retirement. In the case of early termination of employment, from 62 years of age a person will receive less pay, and only from the age of 67 – calculated before retiring in height. The Greek authorities also want to increase the health insurance contribution of pensioners by 2 percent.
The pension reform will be very painful and it can be expected that trigger protests. Existing retirees are already resent the government that the system does not care about the poorest, who also suffered from the closure of banks for two weeks.
The Greek pension system for years says that it is inefficient. Many people have the opportunity to take early retirement, and high unemployment among young people means that an older person is not who to work with.
The Greek parliament approved a government proposal for an agreement with creditors:
Source: CNN Newsource / x-news
IAR / PAP, bless
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