Greek gov't seeks "bridging deal" until May

Author: newsroom  | Published: February 2, 2015

Athens wants “breathing space” to present its proposals and tide it over until May after the bailout agreement expires on February 28

Athens wants a three-month agreement – what it calls a “bridging deal” – until the end of May in order to submit its proposals, instead of Feb. 28, when the austerity program expires.

Greek Deputy Prime Minister Yiannis Dragasakis said on Sunday that a political agreement would render the request for a technical extension of the fiscal bailout program unnecessary. Speaking to private TV channel MEGA he said that such an agreement would also cover the European Central Bank (ECB) in anything related to bank liquidity.

Greek Finance Minister Yanis Varoufakis made it clear, following a meeting with Eurozone Finmin chief Jeroen Dijsselbloem on Friday, that Greece would no longer cooperate with troika inspectors from the European Commission (EC), ECB and International Monetary Fund (IMF) overseeing the bailout accord. Furthermore, the government boldly stated it would refuse new loans from the EU and IMF, raising questions as to how it would finance itself after Feb. 28.

The government has also stated that it will refuses to deal with technocrats representing its troika of international creditors but wishes to hold direct talks with each of the three institutions’ leaders.

A number of European partners have expressed doubt that the SYRIZA government can meet election pledges and still stay on track regarding its finances. The government has made it clear that it plans to keep its election promises such as raising the minimum wage, restore collective bargaining, rehiring retrenched public workers and stopping privatizations.

Dragasakis clarified that the new program Greece is seeking would focus on restructuring rather than on austerity measures. In particular, tax evasion and transparency would be dealt with.

TSIPRAS

Rallying for allies

A drive to rally support has begun with Varoufakis meeting with his French counterpart Michel Sapin in Paris on Sunday. On Monday, Varoufakis is in London, before talks in Rome on Tuesday. The Greek Finance Minister has also expressed a desire to travel to Berlin.

On his part, Prime Minister Alexis Tsipras is to meet with Italian Prime Minister Matteo Renzi, French President Francois Hollande and EC President Jean-Claude Juncker this week. On Monday, Tsipras is headed to Cyprus for a mostly symbolic visit.