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Greek reforms draw skepticism after Europe finance chiefs' short meeting
by Anthee Carassava
LA Times, March 9

What had been expected to be another long and drawn-out meeting about
Greece’s lingering financial woes broke up after about 15 minutes
Monday without European financial ministers taking formal action on
proposed reforms to the nation’s crippled economy.

Technical committees representing Greece and its international lenders
were ordered to hold talks beginning Wednesday to verify the country's
economic and fiscal situation in light of the reform efforts. That
decision was seen as a clear reminder that Athens, run by a newly
elected leftist government, still remained under the control of its
creditors.

The lack of progress on the reforms drew sharp words from the head of
the Eurogroup, composed of financial ministers from nations sharing
the euro currency.

“We have lost over two weeks in which very little progress has been
made,” said Jeroen Dijsselbloem, the Dutchman who heads the group.
“Real talks have not started yet; there has been no implementation so
we have to stop wasting time.”
. . .
<http://www.latimes.com/world/europe/la-fg-greece-eurogroup-20150309-story.html>


EU, Greece to start technical loan talks Wednesday
by Jan Strupczewski and Renee Maltezou
Reuters, March 9

BRUSSELS  - Warning Greece it had "no time to lose", euro zone
ministers agreed technical talks between finance experts from Athens
and its international creditors would start on Wednesday with the aim
of unlocking further funding.
. . .
The new left-wing Greek government, keen to show voters it is keeping
election promises to break with EU-imposed austerity, has tried
patience among its EU peers by arguing over the form and venue for
detailed talks required to establish its needs and whether it has met
conditions the creditors have set on reforms.

In a compromise, Dijsselbloem said the negotiations among financial
experts from Greece and the creditor institutions --the European
Commission, European Central Bank and International Monetary Fund --
would start in Brussels on Wednesday, not in Athens as has been normal
for EU bailout programs so far.

Those talks, however, would be "supported" by international teams
working in Athens to obtain and check information.

The Greek government has insisted it will no longer deal with the
"troika", as the three institutions have been called in a term that is
now anathema for many Greeks who associate it with massive cuts in
public spending. It has also said it will not tolerate irksome foreign
inspection visits to Athens.

The Eurogroup now calls the troika "the institutions" and the talks
will, formally at least, be based in Brussels. EU ministers say they
do not want "semantics" to get in the way of negotiations intended to
prevent Greece going bankrupt and potentially being forced to abandon
the single currency.

Greek Finance Minister Yanis Varoufakis, a Marxist academic economist
who has enlivened the Eurogroup with barnstorming rhetoric against
austerity, insisted the "troika is finished".

Officials from the institutions in Athens would be given all the
information they needed, he said, but the old style that drew
comparisons from Greeks of the Nazi occupation was over:

"The idea of troika visits, comprising cabals of technocrats from the
three institutions in lockstep walking into our ministries and trying
to implement a program which has failed ... that is a thing of the
past," he said.

It had "alienated" Greeks and contributed to a resistance to reform,
he said, declaring that no time had been wasted and that he expected
to conclude a successful review ahead of schedule.

How rapidly negotiations will proceed remains to be seen. The
Eurogroup agreement last month made disbursement of further funds
before the current EU program expires at the end of June conditional
on Greece passing a final set of tests that it is reforming its
economy to cope with its massive debts.

Dijsselbloem acknowledged Greece was under severe pressure to find the
cash to pay looming debt service commitments, but said that pressure
ought to serve as an incentive to reach a deal with the creditors.
However, he added that if Greece showed it was implementing some of
the measures, then some funds could be released before the planned
review concludes next month.
. . .
The ECB's Governing Council is set to hold a teleconference on
Thursday to discuss extending that emergency liquidity assistance
(ELA), a person familiar with the matter said.

BETTER OFF OUT?

A senior ally of German Chancellor Angela Merkel said Greece would be
better off outside the euro zone, suggesting that Finance Minister
Wolfgang Schaeuble privately agreed.

"By leaving the euro zone, as Schaeuble has suggested, the country
could make itself competitive again from a currency perspective with a
new drachma," Peter Ramsauer of the Bavarian Christian Social Union
(CSU) wrote in Bild newspaper.

Merkel and Schaeuble have both said publicly they want to keep Greece
in. But in a sign that German views may be shifting, Ramsauer said a
temporary "Grexit" would be a "great opportunity" to boost its economy
and administration, "making it fit to return to the euro area from a
position of strength".

Seeking European support, Greek Prime Minister Alexis Tsipras will
meet European Commission President Jean-Claude Juncker in Brussels on
Friday. Juncker has been trying to mediate between the new Athens
government and its EU creditors, notably Germany, but his efforts have
irritated Berlin.

An opinion poll on Monday showed a large majority of Greeks want
Athens to compromise to avoid having to leave the euro.
<http://www.reuters.com/article/2015/03/09/us-eurozone-greece-idUSKBN0M50SX20150309>

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