A new round of negotiations between Greece and its international creditors (European Commission, European Central Bank and International Monetary Fund) begins on Tuesday in Brussels. The Greek delegation is working to close all pending issues with the Brussels Group as quickly as possible so that a deal can be secured without backing down from the “red lines” set by the Radical Left Coalition (SYRIZA) government. If there is no progress over the next 48 hours then creditors will call for the Troika to return to Athens in the belief that long-distance talks are futile.

On Monday night, the government advised the Greek delegation – headed by George Choulariakis – on various issues ahead of negotiations. Some of the matters discussed were the VAT, the fiscal gap and social security. Government sources said that talks are close to an agreement concerning VAT with three rates being discussed (7%, 14% and 22%) – the government is pushing for as many food products as possible to be included in the low VAT rate.

The fiscal gap is a more complex issue as there is a 1-billion-euro difference in estimates that has arisen due to different calculating methods. Despite the government’s “red lines”, the Brussels Group also wants to put social security and labor issues on the table for discussion.

The government has stressed optimism concerning talks, however the lenders appeared less hopeful that common ground would be found. On Monday, they expressed doubt that there would be adequate convergence and left open the possibility that talks would begin again on Wednesday rather than Tuesday.  Greece’s creditors point to slow progress and are urging for talks to take place in Athens for speedier negotiations.