The Greek government has submitted its counter-proposals to the institutions, in an effort to close the gap on outstanding issues. A team comprised of the Government VP Yannis Dragasakis, State Minister Nikos Pappas and Alternate Minister of International Economic Relations Euclid Tsakalotos is currently in Brussels to meet with the institutions on Sunday, where the counter-proposals will be discussed.

According to the sources within the Greek government, it appears that an agreement is closer than ever. These estimations are based on the fact that there are small differences on the unresolved issues, such as the primary surplus, with Greece proposing a 0.75% GDP goal for 2015, while the creditors insist on 1% target.

“Consequently, what is needed is the political will to understand each other. One could not imagine that the European political leadership would lead Europe to a division over such a small difference and to insist that Greece does not implement the institutional framework of collective bargaining that is in force in most European countries” claim the sources.

Following a six-hour meeting on Friday, the Prime Minister Alexis Tsipras contacted the President of the European Commission Jean-Claude Juncker to discuss the next steps in the negotiations and informed of him of the Greek envoy traveling to Brussels for further discussions. Senior ECB and IMF officers were reportedly invited to head to the Belgian capital to meet with the Greek government officials. The IMF is rumored to be represented by Poul Thomsen.

Possibility of an agreement

The Athens-Macedonia News Agency cites European sources, which commented that the talks may result in an agreement, especially if they are in the right direction. However, they stress that any agreement must be reached with the three institutions – the European Union, the European Central Bank and the International Monetary Fund – and then it must be approved by the creditors, which does not include the European Commission.

With regards to covering the fiscal gap, other sources reported that the interventions will be budgetary and administrative. The Greek government, they stressed, insisted on maintaining the ‘EKAS’ benefit and not implementing the ‘zero deficit’ clause in pensions. Greece also insists on a VAT with three scales: a low 6%, a high 23% and the middle rate still being debated.

Crucially though Greece is also determined on establishing a clear plan on addressing the public debt. In no case does the Greek government the decision to resemble that of November 2012, which has not been implemented to this day.

PM: We are prepared both for an agreement and a rupture

At the meeting that was held in Maximos Mansion on Friday, the Prime Minister told his associates to “set aside any thoughts about elections and a referendum”, arguing that the government had fresh mandate and a “comfortable majority in Parliament”. “The Greek people trusted us to take critical decisions and to manage a difficult situation. Nobody thought that it would be easy” the PM argued.

He also stressed that the government’s goal in the pursuing a “viable agreement” must be to exit the crisis and “the memoranda of subordination”. PM Tsipras added that “if Europe wishes a divide and the continuation of subordination, then we will take the big decision to refuse, to say the big no and fight for the people’s dignity and our national sovereignty”.