Eurogroup meeting: Greece on the lookout for allies

Greece is looking for allies to act as pillows while traveling on a collision course with eurozone partners

Backstage negotiations are in full swing just 24 hours ahead of the Eurogroup meeting on February 11. Pressure is being placed on Berlin to come round to agreeing to the “bridge deal” proposed by Greece, however there is only reserved expectation on the part of the Greek government.

Possible Allies

* U.S. President Barack Obama did not address the Greek crisis in depth in his meeting with German Chancellor Angela Merkel on Monday. He said that he wanted to hear Merkel’s assessment of “how Europe and the International Monetary Fund can work with the new Greek government to find a way that returns Greece to sustainable growth within the Eurozone.” The Obama administration looks sympathetically on Greece’s argument that the crushing debt isn’t viable and that the austerity program has destroyed social welfare and employment.

* European Commission President Jean-Claude Juncker is feverishly trying to achieve a settlement between Greece and Germany, however issued a warning. “Greece should not assume that the overall mood has so changed that the eurozone will adopt Tsipras’ government program unconditionally,” he said.

* Austrian Chancellor Werner Faymann met with Greek PM Alexis Tsipras on Monday. The meeting was encouraging, with Faymann stating that his priority was to keep the euro bloc united. “It’s a European obligation to seriously consider the proposals of the new Greek government. It’s an issue of respect,” he said. He also emphasized that all countries that are in the eurozone must stay in the eurozone.

* Canadian Finance Minister Joe Oliver also believes that compromises need to be made to end the showdown. “There is going to be a tremendous effort to make sure that Greece does not leave the currency union,” he said at the G20 meeting in Istanbul.

* The French and Italian governments haven’t officially supported Tsipras views, however the Greek government expects subtle support from these two partners who also see the failure of austerity.