Independent non-government sources that are privy to the negotiations between Greece and its creditors have confirmed that there has been significant progress in the past 24 hours. The sources not that provided all sides show the necessary flexibility, then the impasse may be overcome at the upcoming Eurogroup on 9 May.
According to these sources the Greek government has presented a plan where it will accept a mechanism of automatically correcting public finances, should there be any deviations from the bailout program targets. This plan includes across-the-board cuts in all ministries, three months after these deviations are confirmed. The government may also take alternative measures, should it decide to exempt a specific ministry from these cuts.
The Greek government’s plan has met positive reactions from the European side, while the IMF remains reserved. As such a lot of consultations and negotiations will take place until the Eurogroup in order to iron out the differences and reach an agreement.
