European Commission proposes a compromise solution
The European Commission has proposed payment of a tranche towards Greece to pay off overdue state debts…
The European Commission has proposed payment of a tranche towards Greece to pay off overdue state debts, ahead of Monday’s Eurogroup meeting and until the bailout review concludes. In return, the Greek government will have to introduce the automatic adjustment mechanism
The proposal appears to have been made because the Commission predicts that there will be delays in the review process and is concerned about Greece’s ability to pay of major debts towards the European Central Bank in July.
Major leaks ahead of Monday’s Eurogroup
The revelation regarding the proposal came from Bloomberg, while the Financial Times revealed a letter from the IMF’s Christine Lagarde towards the European Finance Ministers, asking for debt relief. Earlier, the MNI news agency revealed a letter by the Greek Finance Minister warning about the Greek Parliament’s inability to pass 9 billion euros worth of measures.
These leaks do not so much reveal anything new regarding each side’s position, but rather aim to put additional pressure on the European Finance Ministers, when they meet on Monday, to provide a solution.