The International Monetary Fund lifted the stakes in Greece’s stalled debt talks on Thursday by pulling its delegation out of negotiations in Brussels. The surprise move came as the EU warned Greek Prime Minister Alexis Tsipras to stop gambling with Greece’s future and make crucial but painful reforms (such as sacrificing pensions) that would avert a devastating default.
IMF Spokesman Gerry Rice said that there were major differences between Athens and the IMF in most key areas. “There has been no progress in narrowing these differences recently and thus we are well away from an agreement,” he said, pointing to sticking points such sas pensions, taxes and financing. He gave assurances that while the IMF technical team had returned to the United States, it was still “fully engaged” with Athens and appeared ready to return to the negotiation table on short notice if this is deemed necessary.
Last night,Tsipras met for two hours with European Commission President Jean-Claude Juncker though no breakthrough was recorded. “Come in the torture room,” Juncker told Tsipras at the start of the meeting that EU officials described as a “last attempt” to clinch a deal.
Late-night talks between Tsipras and German Chancellor Angela Merkel and French President Francois Hollande also did not break through the stalemate.
European Council President Donald Tusk issued his own warning that what is needed are “decisions, not negotiations” and he called on Athens to be “more realistic.” He told reporters that time was running out for Greece.
On its part, the Greek delegation has been negotiating a cash-for-reform deal. It, too, left for Athens, however pointed out that all is not lost. “The Greek delegation, as agreed, is ready to accelerate deliberations in order to clinch a deal soon, even over the coming days,” said Greek Radical Left Coalition (SYRIZA) government spokesman Gavriil Sakellaridis.
Greece hopes for a deal at the meeting of eurozone finance ministers on June 18 said State Minister Alekos Flabouraris on Friday in the aftermath of the IMF’s walkout. Greece needs an agreement to unlock funds by the end of the month otherwise it would default on a 1.6-bln-euro repayment to the IMF that could trigger capital controls and push Greece out of the Eurozone.
Athens Protests
Fresh protests erupted in Athens as Communist trade union (PAME) protestors took down the EU flag and drabbed a huge banner over the Greek Finance Ministry. “We have bled too much, we have paid, stop the new measures,” said the banner.
