Greece is anxious for the deal to be completed in time for it to receive funds ahead of a big debt repayment to the European Central Bank due on August 20.
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Liberalize energy supplies for consumers by 2018.
Mr Tsipras said Germany, and in particular its finance minister, Wolfgang Schaeuble, was attempting to undermine Greece and its position in Europe’s joint currency, and would rather see Greece kicked out of the euro. Its economy has shrunk by 30.2 percent for seven years beginning from the world’s financial crisis in 2008. Instead, the Tsipras government is being relieved of the burden of making policy and urged to concentrate on honest execution, which has been Greece’s problem from the start.
Asked whether this meant the bridge loan option was likely to be chosen amid misgivings in some states, notably Germany, about another Greek rescue, Breidthardt said: “It is now in the hands of the eurozone finance ministers to take a final decision”.
In the meantime, Greece must implement the structural reforms needed to restore the country’s long-term growth prospects and thus to strengthen its capacity to repay its creditors without a large nominal debt reduction.
“While Greece appears finally to be on the verge of receiving a third bailout, the extremely optimistic economic and fiscal projections underlying the plan suggest that it might not last for very long”, he said. “Things are looking much better right now”.
Alexander Stubb, his Finnish counterpart, said he was hopeful that unresolved questions over the participation of the global Monetary Fund (IMF), the size of the first aid tranche and timing of disbursements could be “ironed out”.
“We have no breakdown at this stage”.
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Amid Greece’s grim outlook, the debt-laden nation’s economy actually grew 0.8% during second quarter. Accordingly, Greece carried out capital controls for three weeks: banks closed; the stock market was suspended; medicine and food lacked; tourism industry had fallen by 40 percent. Sales in July fell 24pc.
