Greek PM-German Chancellor meet on Tuesday

Crucial Greek-German meeting on Tuesday where PM A. Samaras hopes to get German Chancellor A. Merkel’s support

Prime Minister Antonis Samaras and German Chancellor Angela Merkel will have a working lunch in Berlin on Tuesday following the two leaders’ agreement to meet again during the July 16 EU summit. Mr. Samaras and Ms. Merkel are to discuss the economic situation in Greece, European policy issues and current foreign policy issues.

Athens hopes to gain Germany’s commitment to fully supporting Greece as it enters the last phase of its bailout program. The aim of the Greek government is to complete the Greek evaluation by the troika without any hitches and to prevent new fiscal measures from being introduced.

The government wants the green light so as to include benefits that weren’t announced by the prime minister during the 79th Thessaloniki International Trade Fair, such as the regulation that would allow overdue debts to the State to be paid off in 100 installments. The government hopes to include VAT reductions on specific products and reduce extraordinary contributions by 20-50% in measures aimed at improving the social climate. To this effect the government also hopes to avoid insurance and labor reforms.

The German side is expected to give praise for the country’s achievement in applying reforms but is also expected to underline the need for the continuation of these measures that the German government believes is the “gospel” for a solution to the crisis.

The meeting is to take place at 12.30 p.m. on Tuesday and will be followed by a press conference.