Painful negotiations with the troika for completion of review

The troika isn’t budging in its demands for more austerity measures while leeway for Greece’s bailout exit by the end of the year is running out

Talks have stalled between the Greek government and the troika of international creditors from the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF). The government estimates that negotiations will continue and it is hoped that the troika will visit the country by the end of the week as the margin for the completion of troika’s review prior to the December 8 Eurogroup meeting is tightening.

The teleconference call that ended at dawn on Friday did not ease the deadlock as creditors are insisting that the government agrees to more austerity measures before they agree to come to Greece.

What troika wants:
* Fiscal measures to cover the gap estimated at 2.5 billion euros for 2015
* A total rehaul of social welfare and insurance with a government commitment to proceed with pension reductions and increases to the retirement age.
* Abolition of the employment framework with measures for mass dismissals, lock outs and changes in the framework for strike action.
* Changes to VAT tax.

The government excludes the possibility of the total measures that troika is demanding to be passed through and is seeking a more lenient compromise, however contact between high-ranking government officials and the troika have been groundless. Most of the intransigence is due to the position of the IMF that is constantly increasing its demands and seeking to stay in the country following the end of the current bailout. Pressure on Greece escalated after an EU leak stating that Greece will not exit the bailout before troika completes its review.