Greek PM demands EU stop 'unilateral actions' as tensions flare
By Costas Pitas and Caroline CopleyATHENS/BERLIN Wed Mar 18, 2015 1:59pm EDT
Greek Prime Minister Alexis Tsipras gives a statement at the European
Parliament in Brussels, March 13, 2015. Credit: Reuters/Eric Vidal
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ATHENS/BERLIN (Reuters) - Greek Prime Minister Alexis Tsipras lambasted
European partners on Wednesday for criticizing a new anti-poverty law hours
before it is voted on, saying it was the euro zone rather than Athens that must
stop "unilateral actions" and keep its word.Tsipras's impassioned speech to
parliament as it prepared to vote on his government's first bill marked the
latest escalation in a war of words between Athens and its creditors that has
raised the risk of a Greek bankruptcy and euro zone exit.European Council
President Donald Tusk called a meeting on Greece for Thursday evening at
Tsipras' request on the sidelines of an EU summit with the leaders of Germany,
France, the European Central Bank, the European Commission and the chairman of
euro zone finance ministers.The leftist Greek leader is pressing for a
political decision to break Greece's cash crunch, while the creditors have
insisted Athens must first start implementing previously agreed economic
reforms and hold detailed talks on its financial plans.Tensions over Greek
flip-flopping on the terms of a bailout extension agreed last month flared
again after an EU official wrote to Athens urging more talks with lenders on
the bill before the vote. The letter told Tsipras's leftist government to hold
further talks with the EU on the bill or risk "proceeding unilaterally" against
the terms of a Feb. 20 accord that extended the bailout and staved off a Greek
banking collapse.European Economics Commissioner Pierre Moscovici denied the EU
was trying to stop Athens from passing the law but that the official had been
correct to remind the Greek government to consult with lenders first."The
European Union as a whole wants Greece in the eurozone," Moscovici said, but
added that the February deal must be respected. "Greece must stay in the euro
zone... but at these conditions."An indignant Tsipras defended the so-called
"humanitarian crisis" law - which offers food stamps and free electricity to
the poor - as the first bill in five years drawn up in Athens rather than
ordered by EU technocrats."If they're doing it to frighten us, the answer is:
we will not be frightened," Tsipras told parliament. "The Greek government is
determined to stick to the Feb. 20 agreement. However, we demand the same from
our partners. Let them stop unilateral actions, respecting the agreement they
signed."The bill was approved in principle by lawmakers before a formal vote
later on Wednesday, when it is expected to pass by a wide margin with
opposition support as well. Members of the governing Syriza party said the
remarks by the head of EU delegation to Greece Declan Costello were "an
intervention in the legislative process that is an insult to all of us," in a
letter of complaint read out in parliament.Tsipras continued his attack against
"EU technocrats" over the letter."The behavior of some, not all, of our
partners and especially some of the technocrats and technocrat teams only
confirms the arguments of the Greek side," Tsipras said. "What else can one say
to those who have the audacity to say that dealing with a humanitarian crisis
is a unilateral action?"European Commission President Jean-Claude Juncker said
he was concerned about the pace of progress on resolving Greece's debt crisis
and urged those involved to "get a grip"."I'm still worried. I'm not
satisfied," he told a news conference. "I'd like everyone to get a grip on
themselves.""TIME RUNNING OUT"The latest comments come as Greece risks running
out of cash in weeks amid a widening rift with its creditors. Technical teams
from Greece and its international lenders started talks last week to try to
agree details of reforms, but have made little progress so far."We have the
impression, and everyone who is dealing with the question shares the
impression, that time is running out for Greece," German Finance Minister
Wolfgang Schaeuble, said in Berlin, noting that Athens was refusing a third
bailout package.Shut out of debt markets and with financial aid frozen by irate
lenders, Athens needs to quickly find new funding. Tsipras will raise the
problem in talks with EU leaders at this week's summit, his government said.
But EU officials said they did not understand what Greece hoped to achieve by
bringing the issue to the summit, where it is not on the formal agenda and
could only be discussed on the sidelines and only in broad political terms.In a
small boost for the government, Greece sold 1.3 billion euros ($1.38 billion)
of three-month Treasury bills on Wednesday in its third successful auction this
month. The sum covered the amount it sought to raise to refinance a maturing
issue.France appealed for restraint to avoid accidentally triggering a Greek
euro zone exit."France will be do everything it can to avoid an accident and I
believe that what we will do will avoid it," Finance Minister Michel Sapin
said. "But no one can be categorical on this and this is why, on both sides,
people must control their language." (Additional reporting by George
Georgiopoulos, Renee Maltezou and Karolina Tagaris in Athens, Alastair
Macdonald and Jan Strupczewski in Brussels, Yann Le Guernigou in Paris, Writing
by Deepa Babington; Editing by Dominic Eand Paul
Taylorvans)http://www.reuters.com/article/2015/03/18/us-eurozone-greece-eu-idUSKBN0ME0NM20150318?feedType=RSS&feedName=topNews
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