The ministers of Labour, Development and Environment will pass again by the Ministry of Finance – Chances for new contacts from Saturday morning

The negotiation with the country’s lenders is entering its most crucial phase that will show what the Greek side will leave and what it will gain after many months of bartering with the troika. After today’s negotiations between government ministers, crucial meeting of Yannis Stournaras with Thomsen, Masuch and Morse is expected to start soon.

Moments ago, Stournaras started a meeting in his office with the FSF administration on the issue of banks, which will be followed by a special meeting with Vroutsis’ participation for labour issues, collective layoffs and reduction of employer contributions. Around 22.30 there will be a meeting with Development Minister Kostis Hadjidakis, while after 11 pm there will be meeting with the leadership of the Environment Ministry to discuss the aid package of 150 million euros for the industry. These issues might bring new meetings with the troika from Saturday.

“We need to see where each of us can retreat,” a government source said, describing the climate in view of the final negotiation. So far the Greek government is entrenched behind the “red lines” for redundancies in the private and public sector, while the troika is also blocking the changes in taxation.

Since Friday morning Stournaras has met with the ministers of Development Kostis Hadjidakis, Labour Yannis Vroutsis and Energy Yannis Maniatis.

Troika has already presented its own draft agreement and its observations have been sent to all ministries so they can see what it asks for to reach an agreement and, accordingly, do so.

But the pressure from Greece’s creditors remains and they won’t change their stance easily regarding the extra layoffs in the public sector, the collective redundancies and changes in taxation, though it seems that they accept some small reductions in the tax penalties.