After a weekend of hard negotiations between the Greek government and its partners, the pressure from the lack of liquidity is mounting and threatening to cause even greater problems.
With time running out for the Greek government, it is now aiming for an overall agreement, which will not only provide the terms and conditions to collect further aid (which Greece has not received since August 2014), but the next stage of the new midterm program.
Brussels however does not appear to be convinced, despite the progress in the technical negotiations and remains adamant about interventions in the pension system, which are linked to the Greek debt’s sustainability. In order to release further financial aid towards Greece, the creditors insist upon the completion of the program review.
On the other hand, Athens is striving for a “package deal”, which would allow it some political maneuvering and to manage its next steps. Brussels and Berlin believe that if the continue to pressure the Greek government, it will be forced to accept its terms. The main goal, after all, is to complete the final review, which necessitates changes to the pension system and clear commitments about the next few months.
According to the meeting of the political negotiation group on Sunday, under Prime Minister Alexis Tsipras, there was some progress in the weekend’s Brussels Group towards an agreement and there was confidence of an agreement at Wednesday’s talks in the Belgian capital. Brussels however does not share the optimism in Athens, noting that there are slims chances of a Eurogroup being called within the week, so long as the distance between both sides remains unbridgeable.
