Bloomberg reported that a teleconference between the Greek government and the heads of the country’s representatives of creditors that began at 11 p.m. on Thursday ended in disagreement leaving open the date for troika’s return. The 4-hour teleconference call was critical in terms of when the troika representatives of the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) would come to Athens to complete the review of the Greek fiscal program.
Finance Minister Gikas Hardouvelis, Alternate Finance Minister Christos Staikouras, Deputy Finance Minister Giorgos Mavraganis and Prime Minister Antonis Samaras’ associates Stavros Papastavrou and Chrysanthos Lazaridis participated in the teleconference that ended in the early ours of Friday morning at around 3 a.m. in the morning without much progress. The 2015 fiscal gap that is currently estimated at 1.7 billion euros had previously been 3 billion euros, showing that the two sides edged closer. The remaining difference needs to be bridged by the Greek government in the 2014 budget that is being drafted in Parliament on Friday, however it seems unlikely that this will happen because the government claims that there is no fiscal gap for 2015. According to a Finance ministry source, “the troika insists on its position over the allegedly fiscal gap (2.6-3.6 billion euros). The same source said that “we are right as we were in the previous years too.”
Greece’s international creditors believe that extra measures need to be taken so that the agreed 3% of the GDP primary surplus target can be achieved. The two sides also need to agree on other outstanding issues such as pension and labour reform. The Greek government also seems adamant to pursue its debt settlement that foresees 100 installments for overdue debts. Sources from the IMF state that the Fund remains steadfast to its positions and believe that Greek compromises made so far are unsatisfactory.
Greece had hoped for troika representatives to set a date to complew the review of the Greek fiscal program in time for it to be submitted before the December 8 Eurogroup meeting. This date is a landmark for the Greek government.
