Greece Lashes Out at Creditor Demands
Eleni Chrepa and Nikos ChrysolorasGreece Lashes Out at Creditor Demands
Eleni Chrepa and Nikos Chrysoloras
Does Tsipras Still Have the Support of Greeks?
The European Union’s frustration with Greece is mounting.
While Prime Minister Alexis Tsipras is looking to nail down when Greece is going to receive more financial aid, the country’s creditors are still focused on the policy measures required to qualify for support.
German Chancellor Angela Merkel demanded urgent action from the Greek government on Monday after U.S. President Barack Obama voiced his concerns about the standoff at a summit of Group of Seven leaders. European Commission President Jean-Claude Juncker said Greece is not doing enough to overcome differences with the euro area.
“I am still waiting for the Greek part of the bridge,” Juncker said in an interview with Bayerischer Rundfunk after a two-day meeting of G-7 leaders at Schloss Elmau in southern Germany. “One can’t endlessly lengthen the EU or Eurogroup part of the bridge.”
Creditors are growing increasingly exasperated with Tsipras’s negotiating tactics after he rejected the terms of an aid package again last week. Tsipras’s government then used a technicality to postpone a payment of about 300 million euros ($336 million) to the International Monetary Fund.
Tsipras will travel to Brussels on Wednesday for an European Union summit with South American leaders which Merkel and French President Francois Hollande will also attend.

Creditors are growing increasingly exasperated with Tsipras’s negotiating tactics after he rejected the terms of an aid package again last week
‘Clear Timeframe’
“Europe and institutions must understand that austerity has failed,” Tsipras said in an interview with Italy’s Corriere della Sera on Tuesday. “Tomorrow we will enter into a discussion on the merits of progress made so far. We will define a clear timeframe for the deal.”
Greek Minister of State Nikos Pappas and Deputy Foreign Minister Euclid Tsakalotos will hold meetings with creditors in Brussels on Tuesday after sitting down with EU Economic Affairs Commissioner Pierre Moscovici on Monday, a Greek government official said.
A solution to the negotiations could be reached before June 14 but further high-level meetings will only happen if there is a chance of a deal, a French government official told reporters on the condition of anonymity.
Relations between Greece and its creditors have soured since last week’s talks between Tsipras and Juncker spurred optimism that a deal might be within reach. The yield on Greece’s 2017 bonds fell to 22.75 percent on June 3, the lowest in two weeks.
The aftermath of that meeting has been marked by mutual recriminations, with Tsipras calling the creditors’ proposal absurd, and Juncker saying the Greek leader had misrepresented the creditors’ position.
Varoufakis’s Response
On Tuesday, 2017 yields dropped for the first time in four sessions to trade at 24.88 percent at 10:30 a.m. in Athens. Greek stocks rose 0.7 percent.
In response to the entreaties from Merkel and Juncker, Greek Finance Minister Yanis Varoufakis questioned the good faith of his country’s creditors.
Varoufakis said in Berlin late Monday that aid could be released overnight if euro-area officials took the negotiations seriously.
“We need to avert an accident that won’t be an accident,” he said at an event that followed a meeting German Finance Minister Wolfgang Schaeuble. “We have a historic duty not to allow this to happen.”

Greek Finance Minister Yanis Varoufakis questioned the good faith of his country’s creditors
German Divisions
Schaeuble is willing to let Greece exit the euro if Tsipras refuses to take measures to fix up the economy and lower the country’s debts, according to people familiar with the matter. That’s opened a divide with Merkel, who is ready to make concessions to keep Greece in the euro because of geopolitical concerns.
European Central Bank Governing Council member Christian Noyer echoed that sentiment at a press conference in Montreal on Monday, arguing that the firewalls the euro area has created since the start of the crisis will protect the rest of the bloc from the fallout from Greece’s problems.
“All of us who were at the table want Greece to stay in the euro area,” Merkel said after hosting the summit of G-7 leaders also attended by Juncker and International Monetary Fund chief Christine Lagarde. “Let there be no doubt about what we always say -- that making an effort of your own and receiving solidarity is the right combination and two sides of the same coin.”
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