Editorial: The necessary compromise
The Eurogroup may not have decided to pay out the 2-billion-euro tranche to Greece, but it seems that we are not far away…
The Eurogroup may not have decided to pay out the 2-billion-euro tranche to Greece, but it seems that we are not far away from the end of the first phase of negotiations. In their statements both Mr. Dijsselbloem and Mr. Moscovici underlined the positive climate of cooperation with the Greek government and the significant progress that has been achieved.
Of course the thorny subject of auctioning primary residences remains and continues to be a key element in reaching an agreement. It will be absurd for this problem to cause delays with greater consequences, since it is also linked to the completion of the bank recapitalization process. Given that both sides truly believe that the most vulnerable social groups must be protected, a necessary and reasonable compromise can be reached.
Because aside from those who objectively cannot meet their obligations towards the banks, there are those who take advantage of the protection afforded to not pay. Both the banks and the relevant Finance Ministry services now have the financial and asset data to separate the wheat from the chaff.
After such a slew of measures which affect the majority of people, it would be absurd to jeopardize the agreement for a few systematic bad debtors. More so when a process has begun to attract foreign investors – whose participation in the recapitalization process is necessary – to invest in the banks. Otherwise Greek taxpayers will have to foot the entire bill.
Mr. Moscovici stated when more than 80% of the prior actions are completed to reach an agreement, it will be time to finish off with the remaining unresolved issues with mutual compromises. So that the economy and people who are in suffering can let go of the uncertainty and being to view tomorrow with a little more optimism.