A top Eurozone official on Tuesday morning estimated that Friday's Eurogroup meeting in Malta will not be greeted with a staff-level agreement between Athens and institutional creditors, a sentiment now more-or-less shared by practically all sides involved in gasping negotiations over the Greek program.
By N. Bellos
A top Eurozone official on Tuesday morning estimated that Friday's Eurogroup meeting in Malta will not be greeted with a staff-level agreement between Athens and institutional creditors, a sentiment now more-or-less shared by practically all sides involved in gasping negotiations over the Greek program.
According to the same high-ranking official, a sufficient amount of progress needs to be made between the two sides, within a matter of days, in order to return negotiators' top representatives to Athens for face-to-face talks. The statement came as a trio of top Greek ministers were set to return to Brussels on Tuesday for negotiations with bailout auditors.
"Political reasons" were cited by the EZ official in Brussels as blocking the conclusion of the second review, who added that differences over pension cuts and tax system reforms necessitates "political and not technical decisions".
As per the coming Eurogroup meeting in Valletta, the same source said progress to date between the two sides will be examined by the Euro area finance ministers. The same official expressed hope that deliberations in the Maltese capital will open the way for a return of creditors' top representatives to Athens.
The April 7 Eurogroup meeting was the latest "unofficial deadline" repeatedly mentioned by the leftist-rightist Greek coalition government for concluding the year-long delayed second review of the program (third bailout). With the date fast approaching, but without a staff-level agreement predicted, another date on the calendar that corresponds with a Eurogroup meeting must be cited. Nevertheless, Eurogroup chairman Jeroen Dijsselbloem said last week that if necessary an extraordinary Eurogroup meeting could be scheduled.
In a more ominous note, and in echoing warnings over the recent period by Greek and foreign officials, including influential Bank of Greece (BoG) Gov. Yannis Stournaras, the top Eurozone official said continuing delays in achieving the second review will cause a re-evaluation of 2017 growth forecasts for the Greek economy.
The most ambitious prediction for the year holds that an economic recovery reaching 2.7 percent of GDP will be recorded in crisis-battered Greece.
Asked about the sudden announcement that Greek Finance Minister Euclid Tsakalotos will return to Brussels on Tuesday, the official said that while not being briefed on the specific development, a return of the minister could help move negotiations forward.