The proposal by Jean-Claude Juncker for an agreement between Greece and its partners that was revealed by To Vima appears to be a meaningful effort to bridge the distance in the negotiations and to make it easier to provide at least some necessary liquidity to the country. It may not have been possible to officially confirm the proposal, but the impact and reactions that it caused internationally make it clear that it is on the negotiation table. After all, it is no secret that the specific proposals contained in the proposal have been discussed for some time between the Greek government and the representatives of the institutions.
The Juncker proposal however, cannot and could not be painless. It includes a series of measures that are far away from the government’s election campaign promises. Given where we are at today though and how serious the liquidity problem is in Greece, it is a realistic basis for an agreement. The crucial question is how the IMF representatives will react, as well as some Eurozone members, who openly insist upon a comprehensive agreement with far harsher measures, in certain areas. After all, when the European Commission has made compromising proposals in the past, it has been unable to overcome the reactions of the conservative circles in Europe.
Mr. Tsipras’ statements on Monday evening, that “we will compromise with our partners” and that “the deal is the final stretch” indicate that the government has at least realized that there is no more room for an extension of the negotiations. With the economy in a state of asphyxiation, the uncertainty inhibiting any financial activity and the state reserves nearly exhausted, every extension of the current impasse will be catastrophic.
Juncker’s proposal offers a way out that must not be wasted. The political cost form the measures that it includes cannot and must not prevent the government from accepting it. The country’s return to normalcy, by securing the necessary funding, is a top priority and overrides any petty political considerations.
TO VIMA