The climate between the Greek Radical Left Coalition (SYRIZA) government and the European Commission – the “friendliest” of the three creditors of Greece – took a downward turn over the weekend, causing Prime Minister Alexis Tsipras to seek signs of progress with German Chancellor Angela Merkel and French President Francois Hollande. The three will meet on the sidelines of the EU Council on Latin America and the Caribbean on Wednesday.
The meeting comes in the aftermath of the G7 summit in Germany where US President Barack Obama met with Merkel, without any positive messages for Athens. During their bilateral meeting, they drank beer and munched on sausages, while agreeing that Greece must reform and return to sustainable long-term growth with Obama hopeful – according to White House Spokesman Josh Earnest – that Athens and its partners could chart a course of recovery without causing volatility to financial markets.
Seeing closed doors in every direction, SYRIZA is unveiling a new plan on Wednesday aiming at a total deal with six angles with scalable implementation until March 2016 when the IMF involvement in the Greek program expires.
The six angles concern:
1. Low primary surpluses
2. Debt Restructuring
3. Protection of pensions and real wages
4. Income redistrubition
5. Resetting collective bargaining agreements
6. A strong investment plan
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