The Radical Left Coalition (SYRIZA) Cabinet meeting on Saturday ran for five hours. In his briefing, Greek Finance Minister Yanis Varoufakis described an “asphyxiating environment” as far as Greece’s financing is concerned. He noted that pressure is being applied to the new government, although the latter cannot appear to back down.
Government sources said negotiations with eurozone partners and other institutional creditors would focus on five points:
* the two sides should commit to avoiding unilateral action (making it clear that the Greek side, in the case of non-agreement, would consider it possible to examine options independently and move unilaterally).
* a three-month “bridge deal” is needed so that the leftist government has time to negotiate with international creditors, but this agreement would not burden taxpayers of other European countries.
* The Greek side wants to use a) 1.9 billion euros from profits of Greek bonds that are being held, b) T-bills beyond the limit of 15 billion euros.
* a “bridge deal” would run until June, and the Greek government is willing to agree to a 4-year program without the type of supervision imposed by the troika of international creditors (European Commission, European Central Bank and International Monetary Fund). Instead, the program would have commitments in terms of public finances, such as the goal of a primary budget surplus and restructuring of expenditures.
* during negotiations, the Greek side will take specific measures to curb tax evasion and corruption.
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