Greek govt locked in power game with EU partners

The Greek side believes that the real problem isn’t economical but political

Prime Minister Alexis Tsipras called on ministries to send their datas to representatives of Greece’s international creditors on Tuesday during a meeting he had with Deputy Prime Minister Giannis Dragasakis and Finance Minister Yanis Varoufakis.

In this way, the Radical Left Coalition (SYRIZA) Government hopes Brussels talks with its international creditors would result in a small injection of liquidity to Greece’s economy to help cover the country’s financial needs in April. Tsipras’ coworkers could not hide their optimism that a solution will be forthcoming on Wednesday as there are no margins for delays with Greek required to make its payment to the International Monetary Fund by next Wednesday, after the Catholic Easter period.

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Technical groups representing Greece’s creditors state that they do not have the full data or adequate costing of reforms and policies planned by Athens, however this does not appear to be seen as a major setback by the Ministry of Finance that feels that the country’s leadership should retain sovereignty. There is the belief that it is not the work of technical teams to tell Greece’s leadership which policy priorities to set. In other words, Greece’s leadership wishes to avoid surveillance as practised in the past with technical teams monitoring the country’s finances.

Reliable sources state that the Greek side has chosen a stand where it does not want to be lost in figures, believing that the real problems that caused the crisis are political rather than financial. It wishes to address these problems in order to get its finances on tracks. SYRIZA believes that a solution to the Greek crisis needs to be dealt with now and in June by politicians rather than technocrats.

The government believes that EU partners do not want Greece to fail on its payment of its IMF installment, however the money in Greece’s coffers aren’t enough for wages and pensions. It appears to be testing the intent of EU creditors to avoid blackmail and pressure exerted on previous governments. Essentially, a power game is being played out between Greece and its partners. “We are at a position where we cannot back down but where we know what we want,” says one Greek minister.

The government also has other contacts that are possible sources of funding should talks with EU partners fall through. Despite this, Tsipras is seeking to find a solution to problems with talks on Wednesday and Thursday with EU leaders and institutions.