The Greek parliament will sit on Friday, hopefully to endorse new suggestions on debt reduction. This is part of Prime Minister Tsipras’ latest attempt to avert a banking collapse and a probable exit from the eurozone.
A 'yes' vote is needed to authorise the Greek government to offer Europe a list of ‘prior actions’ that it will take before any more money can be thrown at the problem.
Tsipras already has chaired a cabinet meeting to finalise tax rises and pension cuts, the figure of €12 billion in savings has been circulating, in order to convince his eurozone colleagues he is serious in his desire to secure an agreement from Europe for more money at the meeting this Sunday.
Merkel has softened Germany’s position by admitting that Greece will need some rather deft debt restructuring as part of a suggested new three-year loan programme.
German Finance Minister Wolfgang Schaeuble remains a hardline, anti-bailout figure as the Greek government scrabbles to submit its plans in time.
Schaeuble at least has been up-front about his views on Greece and agrees with the IMF that having messed up once, Greece should not be allowed any measure of debt relief but did say that there was some scope for re-profiling Greece’s debt by extending loans, cutting interest rates and generally kicking the problem into the long grass for a while.
Schaeuble is miffed that there have been no 'prior actions' issued as yet but tomorrow’s Greek parliamentary sitting may see these approved and on his desk before the Sunday meeting.
The Sunday get-together is the crucial one with European Council President Donald Tusk chairing a eurozone emergency meeting to decide on the Greek proposals.
There is now pressure building for Greece to be given a degree of debt relief as well as a new loan to add to the €240 billion it already has borrowed from Europe and the International Monetary Fund.
