The summit that is taking place in the Latvian capital of Riga is critical for Greek government as it has invested a lot in a statement that will giver greater room to maneuver in the negotiations and put an end to the financial crunch. Mr. Tsipras’ main goal ahead of the summit and four-way meeting with German Chancellor Merkel, French President Hollande and EC chief Juncker is for a mutual statement with clear references to a “visible agreement”.
Such a statement would allow the European Central Bank to restore funding to the Greek economy, by allowing Greek banks to buy Treasury bills that will act like cash injections, until the Greek problem is resolved. Nevertheless, these expectations are being threatened or undermined by public statements of Greek and foreign officials.
On the one hand, Finance Minister Yanis Varoufakis hinted in the NY Times that he has recorded the Eurogroup talks of the 24th of April, which is anything but conducive towards cultivating calmness and a positive atmosphere. Furthermore, he recently stated at the Athens Chamber of Commerce and Industry (EVEA) that while exiting the euro may be catastrophic, he warned that he will consent to something that cannot be implemented.
Meanwhile the messages from Berlin are clear, with the German Ministry of Finances announcing that it is only discussion the current program for Greece and the obligations that derive from it. Later on Wednesday a Finance Minister officer added that nothing else is being discussed – not extending the current program, a third program or a comprehensive agreement – in spite of Athens’ claims.
