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Greek PM hopes to find an Italian ally

PM A. Tsipras is to present his case against troika and in favor of growth

Newsroom February 3 08:24

Prime Minister Alexis Tsipras is visiting Rome on Tuesday in an effort to gain support for Greece’s plans to abandon austerity. The Greek government is pinning its hopes on Italy and France where there is opposition to Berlin’s recipe for austerity.

Italian Prime Minister Matteo Renzi told RTL radio on Monday that the debate in Europe had to turn to growth, strengthening the likelihood of a common line with Tsipras. “We want to shift the debate on economic policy away from austerity and rigor toward growth and investment,” he said.

The Greek government saw this comment as a positive starting point for a “fruitfal discussion.” In Rome, Tsipras hopes ot secure clear support for his campaign from his center-left counterpart. Government sources state that Tsipras will indicate readiness to proceed with reforms for fiscal balance and social justice, however he will also request fiscal space. He is expected to tell his Italian counterpart that the troika of Greece’s international creditors from the European Commission, European Central Bank and International Monetary Fund are blocking rather than encouraging growth and investments.

His drive will continue on Wednesday when he meets in Brussels with European Commission President Jean-Claude Juncker and in Paris with Francois Hollande.

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Prior to Tsipras’ visit to Rome, Greek Finance Minister Yanis Varoufakis will be in Italy for talks with Renzi as well as Italy’s Finance Minister Carlo Padoan. This is indicative of the importance that Greece is placing on Rome’s acquiescence to the Greek plan.

The Greek government hopes to secure a “bridging deal” to secure stability for the economy until a reform program aimed at fiscal consolidation without further cuts to convince lenders and partners to view the Greek problem from a different standpoint.

Berlin is standing in Greece’s way, but it is hoped that pressure from Washington, the European Commission and European governments to examine the crisis afresh would help build a new program with a viable solution that is pallatible for the German government. Greece is currently preparing for a possible meeting between Tsipras and German Chancellor Angela Merkel on the sidelines of the EU summit on February 12.

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