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1) Greece defies creditors’ demands for decisions on reform by Peter Spiegel in Brussels and Michael Hunter in London Financial Times, June 12 <http://www.ft.com/cms/s/0/0c45e4ee-10d9-11e5-8413-00144feabdc0.html> Athens insisted on Friday that it was still negotiating with its creditors to unlock €7.2bn in desperately needed bailout aid, but showed little sign of acquiescing to their demands for concessions on economic reform. A day after the International Monetary Fund pulled its officials out of talks and EU leaders said it was decision time for Greece, Athens said it had submitted a new plan that included debt restructuring but excluded cuts to pensions, elements rejected by bailout monitors earlier this week. According to a Greek government official, the plan should also include “low” budget surplus targets this year and next; creditors have sought surpluses of 1 per cent of economic output this year and 2 per cent in 2016. Those levels are significantly below the current bailout programme’s targets, but higher than Athens has sought. Negotiations between Athens and its creditors have ground to a halt just days before a critical meeting of eurozone finance ministers next week that officials believe may be the final chance for a deal to be struck to avoid a Greek default. The IMF on Thursday said that it had pulled out its negotiating team because long-standing differences between the two sides were not being discussed. Senior EU officials signalled they were no longer willing to compromise. The Greek government plan on Friday brushed aside the latest warnings and blamed the IMF pull-out on “an internal dispute” among bailout monitors. Athens said it would be sending top officials to Brussels on Saturday to present its counter-proposals. But its renewed demand for debt restructuring is likely to be met with dismissal from creditors. Although some eurozone officials believe a promise of future debt relief could be part of a final deal, they have repeatedly insisted a writedown would not be part of the current negotiations over the €7.2bn aid tranche. In addition, the IMF has continued to insist that pension cuts totalling 1 per cent of gross domestic output be included in any deal, arguing that Greece’s pension system is unsustainable. While Athens has resisted such cuts, citing already-impoverished pensioners, creditors have asked Greek officials to find cuts elsewhere if it wants to avoid such pension reductions for the poor. Greece’s creditors have become increasingly exasperated at its negotiating strategy in recent days. During a meeting of eurozone finance ministry officials in Bratislava, several governments made clear they no longer supported a follow-on bailout once the current Greek programme ends this month, although the current rescue could conceivably be extended by several months. The warnings from creditors that negotiations are at an end sent financial stocks on the Athens exchange tumbling on Friday while investors also dumped Greek government debt. . . . 2) Tsipras meets with deputies as 24 hr deadline looms by Pavlos Zafiropoulos | Times of Change, Greece, June 12 <http://www.thetoc.gr/eng/politics/article/tsipras-meets-with-deputies-as-24-hr-deadline-looms> An emergency meeting of top cabinet ministers and officials responsible for leading Greece's political negotiations has been underway for a number of hours in the prime ministerial mansion of Megaro Maximou, while numerous sources are reporting that the Greek government has been given a 24 hour deadline to submit additional reform proposals to its creditors in order to unblock the impasse. Taking part in the meeting earlier were the Deputy Prime minister Yannis Dragasakis, Efkleidis Tsakalotos, Nikos Pappas, Giorgos Stathakis, Yanis Varoufakis and Panagiotis Lafazanis. They were reportedly joined by the junior coalition leader Panos Kammenos, labour minist[er] Panos Scourletis and [Alternate Social Security Minister] Dimitris Stratoulis. In the meantime a non-paper leaked by Megaro Maximou outlines both the government’s push to conclude an agreement soon, as well as its position that be a comprehensive agreement. The non-paper also presents the government’s view that the departure of the IMF’s technical team from Brussels amounted to a tactic to pressure not only Greece but also the ECB and the European Commission over the negotiations. What the non paper writes: . . . [2.a) see The Greek Analyst: Game of Ultimatums 2: The 2nd nonpaper of the Greek government <https://greekanalyst.wordpress.com/2015/06/12/game-of-ultimatums-2-the-2nd-nonpaper-of-the-greek-government/#more-329> The Greek government just released a second non-paper within the day. It has a much more conciliatory tone than the first one. The Greek side is ready to submit counter-proposals, in order to bridge the remaining differences, exactly as it was agreed in the meetings of the Prime Minister in Brussels, with the leaders of Germany and France as well as with President Juncker. Representatives of the Greek Prime Minister will be tomorrow morning in Brussels in order to meet with representatives of the chiefs of the institutions. The estimate of the Greek government is that we are closer than ever to an agreement, since the difference in primary surpluses is only one of the scale of 0,25%. Consequently, what is needed now is the political will of mutual understanding. Nobody could ever imagine that the European political leadership would lead Europe in division for such a small difference, and for the insistence not to implement for Greece the framework of collective bargaining that is at place in most European countries. The first 'non-paper' is here: <https://greekanalyst.wordpress.com/2015/06/12/game-of-ultimatums-the-nonpaper-of-the-greek-government/#more-322>] 3) Greek delegation heads back to Brussels for new round of talks I Kathimerini, Athens, June 12 http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_12/06/2015_551003 Talks between Greece and its lenders are due to resume in Brussels on Saturday after a clutch of government officials flew back to the Belgian capital on Friday in an attempt to salvage hopes of an agreement to secure another 7.2 billion euros in bailout funds. Deputy Prime Minister Yiannis Dragasakis is leading the Greek delegation, which also includes State Minister Nikos Pappas and Alternate Minister for International Economic Relations Euclid Tsakalotos. Pappas and Tsakalotos were in Brussels earlier in the week but their talks with representatives of Greece’s lenders did not lead anywhere. It is believed that the delegation is going back to Brussels, where they will meet a representative of European Commission President Jean-Claude Juncker, with proposals aimed at overcoming the deadlock in the talks, which revolves largely around differences over fiscal targets, pension cuts and labor market reforms. Prime Minister Alexis Tsipras spoke with Juncker yesterday ahead of dispatching his team to Brussels. European Commission sources stressed that the contact with Dragasakis and the accompanying officials would be an exchange of information and not part of the negotiating process as the other two institutions, the European Central Bank and the International Monetary Fund, would also have to take part for decisions to be taken. There was no confirmation last night from Washington that IMF officials would be meeting the Greek delegation in Brussels. Creditors have advised Greece that an agreement is needed by Thursday, June 18, when eurozone finance ministers are due to meet in Bratislava, otherwise there may not be enough time to approve disbursements or extend Greece’s program beyond the end of the month, when it is due to expire. The lack of time left to reach a deal led to the possibility of an agreement not being reached being discussed for the first time at Friday’s Euro Working Group meeting, sources said. Greece’s representative, Giorgos Houliarakis, is said to have heard colleagues discuss the need for capital controls and even humanitarian aid in the case of a Greek default. 4) Creditors tell Greece it is time to decide over bailout Peter Spiegel in Brussels and Shawn Donnan in Washington Financial Times, June 11 http://www.ft.com/cms/s/0/b913c958-101f-11e5-ad5a-00144feabdc0.html . . . Signs suggest Greece has begun to shift strategy in response to the stark warnings. Nikos Voutsis, the interior minister and veteran ally of Mr Tsipras, ordered all mayors and regional governors to transfer their cash reserves immediately to the central bank — a sign the government is now bracing for the prospect of not winning any rescue cash before its bailout expires at the end of the month. In addition, a government official said Mr Tsipras was taking authority for day-to-day negotiations away from mid-level officials and giving it to two of his closest advisers, including Nikos Pappas [Minister of State], his long-time aide-de-camp. Mr Tsipras would oversee the “whole process” in the hope of securing a deal by next week, the official said. The German government has privately been sending signals in recent days intimating that it was time to cut off talks and adopt a more hardline, “take it or leave it” approach to the talks. According to three senior eurozone officials, German leaders have told other eurozone capitals they are no longer willing to negotiate beyond a compromise deal presented to Mr Tsipras last week by Mr Juncker on behalf of Greece’s creditors. Officials said Mr Tsipras’s strident rejection of the proposal before the Greek parliament on Friday, coupled by his government’s attempt to renegotiate budget surplus targets that creditors thought they had agreed to, has hardened Berlin’s stance. . . . One German official involved in discussions said differences remain between Angela Merkel, chancellor, and Wolfgang Schäuble, her finance minister, over how to approach the stand-off. Ms Merkel is still committed to preventing a Greek exit from the eurozone, though she has grown unsure in recent days that Mr Tsipras can deliver on reform commitments. Mr Schäuble has expressed more of a willingness to allow “Grexit”, an attitude shared by a growing number of MPs in their Christian Democratic bloc, the official said. . . . 5) SYRIZA MPs gearing up for compromise I Kathimerini, Athens, June 11 <http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_11/06/2015_550963> There were signs on Thursday that SYRIZA officials are preparing their party colleagues and the public for the possibility that the government will have to sign up to an agreement with lenders that will not be looked upon favorably by some MPs and voters. “It is a compromise; we are not hiding it,” said SYRIZA’s parliamentary spokesman Nikos Filis of the ongoing talks with creditors, while admitting that the negotiations were “not planned in the most effective way.” Filis insisted that whatever agreement Prime Minister Alexis Tsipras brings home will be the best possible deal and will receive the support of SYRIZA’s MPs. Labor Minister Panos Skourletis echoed this view. “I do not think the prime minister will bring an agreement which will be in danger of not passing through the current parliamentary group,” he said. “Mr Tsipras knows very well what was in our manifesto, what we want to stand for and who we represent.” SYRIZA’s MEP Costas Chrysogonos also stressed that the government faces no choice but to back down from some of its demands and accept what lenders have put on the table. “It’s not as if we’ve won a war against our lenders in order to impose conditions on them,” said the European Parliament lawmaker. State Minister Alekos Flambouraris was also confident that an acceptable deal could be reached, even by the next Eurogroup meeting on June 18. The veteran politician insisted that any deal would contain a clear commitment to further debt relief for Greece. 6) SYRIZA Retains 14.6 Percentage Point Lead According to Poll by A. Makris The Greek Reporter, June 12 <http://greece.greekreporter.com/2015/06/12/syriza-retains-14-6-percentage-point-lead-according-to-poll> The SYRIZA party is still 14.6 percentage points ahead of main opposition New Democracy according to a nationwide Marc poll published by Alpha. In terms of voter intent, SYRIZA is first with 34.2 pct, followed by ND with 19.6 pct, Potami with 6.3 pct, Communist Party of Greece with 5.2 pct, Golden Dawn with 5 pct, Independent Greeks with 3.7 pct, Union of Centrists with 1.8 pct, Kinima with 1.1 pct and other parties 3 pct. The unspecified vote came to 16.9 pct. According to the poll conducted on June 7-10, 30.7 pct of citizens hope for “something better” four months after the elections, 59.8 pct fear “the worst” while 5 pct replied “neither” and 3.5 pct said “both equally” and 1 pct declined to answer. Asked for their evaluation of the government, 32.6 pct said it was ‘negative’, 20.5 pct said ‘probably negative’, 20.9 pct said positive, 24.1 pct said ‘probably positive’ and 1.9 pct declined to answer. On whether they were satisfied with the prime minister’s handling of things, 30.7 pct said ‘yes’, 22.3 pct said ‘probably yes’, 31.6 pct said ‘no’, 14.6 pct said ‘probably no’ and 0.8 pct didn’t answer. On satisfaction with the actions of Parliament President Zoi Kostantopoulou, 55.8 pct said ‘no’, 9.1 pct said ‘probably no’, 20 pct said ‘yes’, 11.7 pct said ‘probably yes’ and 3.4 pct ‘no answer’. An overwhelming majority of 80.3 pct considered that an agreement between Greece and its creditors will finally be reached, 13.9 pct see a complete rift and 5.8 pct declined to answer. A further 77.1 pct was in favour of an agreement, 18.9 pct wanted a rift with the creditors and 4 pct did not answer. Asked whether the government should accept an agreement, 50.2 pct said yes, 37.4 pct said it should clash with the creditors and 12.4 pct did not answer. In terms of satisfaction with the negotiations, 40.4 pct said ‘no’, 13 pct said ‘probably no’, 29.3 pct said ‘yes’ and 16.1 pct said ‘probably yes’ and 1.2 pct did not answer. Fifty-six pct of those asked said they wanted the government to display more realism in the negotiations, while 39.2 pct said it should insist on its pre-election pledges and 4.8 did not answer. Over three quarters, or 77.4 pct, are in favour of Greece remaining in the eurozone and 16 pct want a return to the drachma. In the case of deadlock, meanwhile, 44.2 pct prefer a national unity government, 37.6 pct want the same government to continue and 13.8 pct want elections to be held again. (source: ana-mpa) _________________________________________________________ Full posting guidelines at: http://www.marxmail.org/sub.htm Set your options at: http://lists.csbs.utah.edu/options/marxism/archive%40mail-archive.com
