Euro Working Group Chairman Thomas Wieser told Greek newspaper Real News that there is still time for Greece to reach an agreement with the troika of Greece’s international creditors from the European Commission (EC), European Central Bank (ECB) and International Monetary Fund.
“There is still the possibility for everything to be agreed upon within 2014,” he said. “Legislation for the prior actions can be passed in the last week before Christmas.” He noted that this would only be possible if the troika immediately agreed upon the entire agenda of issues.
He said that the points of disagreement between the two sides were mainly focused on the 2015 budget that the troika believes has a fiscal gap. The troika would like to see an amendment of the government’s new debt settlement in 100 installments, they also want increases to VAT.
Regarding an extension of the bailout program for Greece, Mr. Wieser said that this must be of a predetermined duration because it needs to be approved by EU parliaments, with one legal document and completion date replaced by another. He pointed to two “strong” alternative scenarios, with the first giving a date of January 31 and the second an extension until June 30.
“If the government agrees with the troika and imposes legislation before Christmas, then we won’t need to discuss anything,” he said. He warned that an agreement must be reached by December 14.
Asked if he agreed that Greece might be left with a gap in its program, Mr. Wieser joked: “You know what it says in the London Underground? Mind the gap.”
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