Greek MPs meetings with institutions are strewn with thorns

A number of “hot” issues are on the negotiating table, but the quartet of creditors are holding their cards tightly to their chest

Finance Minister Euclid Tsakalotos and Economy Minister George Stathakis are continuing their meetings with Greece’s quartet of creditors from the European Commission (EC), European Central Bank (ECB), International Monetary Fund (IMF) and European Stability Mechanism (ESM). The goal is to surpass obstacles by August 11 for a positive recommendation on a new multi-billion-euro loan for Greece. Time is of the essence as the bailout deal needs to be reached so that the Greek and foreign parliaments can ratify the agreement by August 18 and 19.

An optimistic Tsakalotos said on Tuesday that talks with lenders would be wrapped up within days. He told reporters that “everything will be concluded this week.” Officials from the Greek side stated that discussions are better than expected, however creditors are still keeping their cards close to their chest, prefering to listen at the moment without outright rejection of Greek proposals.

On the table at Wednesday’s discussion at the Athens Hilton are the following issues:

– Agreement on the minimum wage following the abolition of pensioners’ social solidarity fund (EKAS).

– Rival reforms that include painful foreclosures to make up for the court decision to render wage and pension cuts illegal.

– Labor reforms: Mass dismissals, group contracts, etc.

– Targets for macroeconomic reforms have yet to be discussed, including a reduction of public sector salaries.

– Setting up the assets fund that is to contain 50-bn-euros worth of Greek assets, the majority of which will be used to recapitalize Greek banks.