Pivotal talks are being held in Berlin at 12.30 p.m. on Tuesday between Greek Prime Minister Antonis Samaras and German Chancellor Angela Merkel. The agenda of the talks include a focus on Greek reforms and the country’s prospects for an exit from the memorandum as well as debt relief. It is expected that Mr. Samaras will seek German political support as he presents progress on the country’s adjustment program.
A senior government source said on Monday that Mr. Samaras will reiterate his commitment to the reforms described in the adjustment program but will explain why Greece cannot sustain further fiscal measures or a third bailout package.
What the Greek government wants:
* The troika’s agreement for benefits and tax exemptions to be included in the draft budget.
* The support of the German government for the start of discussions for the viability of debt.
* The German government’s agreement for the International Monetary Fund’s (IMF) exit from Greece by the end of the year.
The Greek government is unlikely to get clear commitments during Tuesday’s meetings. The German Chancellor’s Spokesperson Steffen Seibert lowered expectations on Monday by stating that Greece’s economic program isn’t a matter of Greek-German “bilateral negotiations” but needs to be solved between Greece and its European partners.
European Central Bank President Mario Draghi said that Greece has made “significant progress” however he noted that Greece’s return to the markets was due to the country’s reform efforts and that the markets won’t necessarily continue to favor Greece if it isn’t tied to its loan agreement.
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