Reports point to widening gulf between Tsipras, finance ministry; more austerity measures not ruled out

Thursday, 14 September 2017 18:46
UPD:18:47
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One unanswered question casting a shadow over official and unofficial Athens prior to negotiations to conclude the third review of the ongoing bailout program is whether current Finance Minister Euclid Tsakalotos will remain in place in a widely speculated Cabinet reshuffle.

The very prospect of a reshuffle is still uncertain, despite rampant rumors in the Greek capital and equally high-profile guesswork over Tsakalotos' fate.

"A reshuffle  will take place. The when is related with the picture that we'll have over how and how long the third review takes. Mr. (Alexis) Tsipras (the prime minister) will seek the best timing, he's not facing another problem," was the way a top minister phrased it in a television appearance this week.

Meanwhile, finance ministry officials on Wednesday, during an off-the-record briefing at the ministry, again attempted to downplay "over-optimistic" statements emanating from Tsipras' office, not to mention the confident language used by the Greek prime minister himself.

Differences in opinion over strategy and tactics related to negotiations with creditors is not a new development in Athens, although officially no statement has seen the light of day. Behind the scenes and during informal discussions, however, the widening gulf between the finance ministry's leadership and the premier's office is a poorly kept secret.

According to numerous press reports out of the Greek capital, which have never been forcefully denied, Tsakalotos was twice ready to conclude negotiations with creditors for the second review, only to face a veto by the premier's office. The result was a year-and-half of delays and essentially a worse deal for the leftist-rightist government coalition.

On Wednesday, only days after Alexis Tsipras' appeared at a major trade exhibition in Thessaloniki to declare that, with creditors' cooperation, the third review is expected to concluded on time and without additionally austerity measures, finance ministry officials leaked the fact that revenues targets are at risk. 

Moreover, if necessary, they said the government will, indeed, take more measures to ensure that the primary budget surplus target for the year is achieved.

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