16 Feb 2015

Exclusive: details of rejected draft Euro statement

The Eurogroup finance ministers just broke up without agreement. I’ve seen the draft statement, rejected by the Greeks. It welcomed aspects of Syriza’s plan but stumbled over the sentence:

“The Greek authorities have indicated that they intend to successfully conclude the programme, taking into account the new government’s plans. In this context we intend to make best use of the existing built in flexibility in the current programme”.

Read more: How a German veto scuppered EU-Greece deal

On this basis the Eurogroup would have extended the availability of European Financial Stability Facility (EFSF) funding Greece relies on.

Greek negotiators said the draft was unacceptable as a basis for discussion. More follows but clearly we are not in for a marathon negotiating session.

The Greeks were, last Wednesday, prepared to sign a document referring to an amended or revised programme. This, yet again retreats to the “existing flexibility” for which read existing conditions.

Around these technicalities the fate of Greece’s future in the Eurozone is being decided.

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One reader comment

  1. Andrew Dundas says:

    One Euro obstruction is that German Landesbanks are guaranteed by their Landes’ Governments. When those state banks bought high yielding and dodgy US mortgage bonds, their government was there for them to cover those liabilities. Hardly ‘communautaire’ behaviours.
    When the German government bailed out Hapag-Lloyd, provided big loans to their car manufacturers and subsidies for the sale of cars too, none of that was consistent with ‘free internal market’ rules either. However Keynesian sensible they were.
    There’s more.
    Were the bail-outs of West and Nordbank banks fair or unfair? Perhaps sensible in their terms, but hardly fair to less affluent Member States.
    However useful, those state gifts were certainly used their citizens’ resources to subsidise German businesses to the disadvantage of others.
    Truth is that Greeks are poorer than their northern tormentors. They can’t afford to stretch the rules any more, even if they want to.

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