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> Economy

‘Greek issue’ played out around European capitals on Tues. amid 'crunch time'

Varoufakis in Paris and Brussels, new 'negotiating duo' meet with Draghi in Frankfurt; Schaeuble dampens hope for deal by Mon.

Newsroom May 5 10:02

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The “Greek issue” was played out in several European capitals on Tuesday, with German FinMin Wolfgang Schaeuble initially dampening expectations that a deal to keep Athens afloat will come before Monday’s Eurogroup meeting.

“At the moment I am somewhat sceptical about whether this (development) will occur before Monday, but I do not rule it out,” he told foreign correspondents on the same day as two top Greek ministers were meeting ith  ECB chief Mario Draghi in Frankfurt.

Additionally, his Greek counterpart, Yanis Varoufakis, in Paris for talks with Franch FinMin Michel Sapin. The radical leftist government in Athens has to make IMF instalment payments this month worth roughly one billion euros as well as keeping something aside for end-of-month payments to pensioners and public sector salaries.

“Of course anything can happen. We will do everything within our means to help Greece,” Schaeuble said, adding that Germany wants to avoid a “Grexit” … “But it doesn’t mean we are prepared to do absolutely anything … Athens has perhaps wrongly assumed that.”

In Paris, the recently demoted Varoufakis described the upcoming Eurogroup session as “just “another step in the direction of a final agreement … to further establish common ground” – ostensibly in talks between Greek government officials and its institutional lenders.

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Hours later from Brussels, Varoufakis said “it was important that the good progress that has been made is solidified.” Not to be left out, Draghi received Greek Deputy Prime Minister Yannis Dragasakis and Alternate FM Euclid Tsakalotos in the ECB’s headquarters, with the latter pair now viewed as having taken over Athens negotiating role from Varoufakis.

A laconic statement by the ECB followed, saying only that during the meeting the situation in the Greek economy was discussed, along with the ongoing negotiations in Brussels. Dragasakis was equally tight-lipped, merely adding the phrase “Brussels Group”.

“We told Mr. Draghi that an agreement is realistic and visible goal,” he said.

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