He says “It’s going to be a long slog through the next few days, but it should get worked out”.
Advertisement
Germany will not comment on Greek proposals for a fresh bailout plan until creditors have offered their judgement, government spokesman Steffen Seibert said.
Valls conceded that France and Germany had a “different rapport” with regard to Greece but that difference didn’t hurt the overall relationship between the two countries.
“The discussions now have to lead to an agreement which respects European rules and Greeks, who have suffered a lot”.
And, whereas the creditors had demanded a €400 million reduction in military spending, Athens is offering to cut 100 million this year and 200 million in 2016.
It is unclear whether all the creditors would back the latest reforms package, which was strikingly similar to the terms Greece had rejected in a referendum Tsipras had called in June.
But Germany, leading a bloc of sceptical eurozone nations, said the outcome of crisis talks this weekend was “completely open”. But he gave scant details of his reform plans, frustrating many lawmakers.
Eurogroup Chairman Jeroen Djisselbloem has been quoted as saying that a decision on the proposals would probably be made on Friday.
He called the proposal a “somersault” for Tsipras, who just a week ago was denouncing creditors’ demands for austerity as “blackmail”.
Pensioners wait in front of the main entrance of a National Bank branch to receive part of their pen …
The eurozone’s top official doesn’t appear to be ready to share his view on Greece’s reform proposals.
In the latest proposals, Greece has asked for 53.5 billion euros (38 billion pounds) to help cover its debts until 2018, a review of primary surplus targets and “reprofiling” the country’s long-term debt.
So the creditors could argue that yet more is needed in terms of adjustments to the public finances to get back on course. Another hopes that the European Central Bank might offer more emergency liquidity, to allow its banks to reopen.
— By John-Thor Dahlburg in Brussels.
Speaking to reporters in Paris on Friday, French President Francois Hollande described the proposals as “serious and credible”.
And the shutdown of Greece’s financial system last week and uncertainty over its future in the eurozone have also delivered blows to the economy that would have to be compensated for by new cuts or extra revenue. That includes more taxes and tighter pension reforms in return for the bailout. The Euro Stoxx 50, an index of major companies across the continent, jumped 3 percent in morning trading.
If the creditors do sign up, then the commitments on debt relief will be interesting to watch, because – even though Greek debt repayments have already been restructured – without some relief over the coming years there is a severe risk of a never-ending recession and no chance of Greece winning make market confidence in the coming years.
And highlighting the rising anger with Tsipras over months of foot-dragging and surprising negotiating twists, European Commission President Jean-Claude Juncker had a stark warning for Greece.
Advertisement
“We have to be very careful because honestly, because I have a little bit of a problem to trust it because what is the difference between Sunday and today?… on Sunday the Greek people voted against these measurements“, Michael Fuchs, deputy parliamentary floor leader of Merkel’s Christian Democrats, told BBC Radio in English. “This is not the time for gripes and assessing the damage, what’s most important is securing the country’s interests and its place in the euro zone”.
