The latest round of negotiations with the troika has reached a critical point, with both sides appearing determined not to yield. A senior Finance Minister officer revealed that the coalition government has drawn a red line and has refused to legislate on mass dismissals in the private sector, dismissals in the public sector for 2015 and to deregulate the sale of milk.
The senior officer, who spoke to Vima under condition of anonymity, explained that “it is a political decision not to legislate” giving in to the triumvirate’s demands. Nevertheless, the officer hinted that the government would consider backing down on the deregulation of milk.
Additionally, there has been very little progress with the banks, which appears to be the greatest obstacle in the negotiations, followed by the troika’s requested changes in employment. Greece’s compromising proposal is still on the table, with the officer expressing the hope that “we do not get to the Eurogroup” and a political decision for the matter. The discussions amongst the top level IMF, EU and ECB executives will carry on throughout the weekend, ahead of Monday’s Eurogroup.
Although the overall negotiations with the troika in Athens will continue until midday on Friday, the senior officer does not believe that an agreement will be reached before the Eurogroup. He was, however, looking forward to a “positive progress report”, which could help approve the loan installment shortly thereafter via teleconference.
Based on the senior officer’s claims, the government’s general financial policy plans would not allow Greece to seek out any long term loans from the markets during the first half of the year. The officer did, however, confirm that the government is preparing to return to the markets in the second half of the year.
