Paris II: Troika rejected the proposals of the Greek government

“An agreement on the assessment report is very unlikely “, government sources say

The fiscal gap in the 2015 budget, i.e. the deficit forecast by the lenders for the following year, has undermined the negotiations between the Greek government and Troika in Paris, which concluded at around 14:00 on Wednesday.

Creditors believe that the fiscal gap is as high as 2.5 billion euros whereas Athens puts it at just 350 million euros that can be covered without new measures. “They won’t commit to an agreement unless the Greek government accepts to implement new measures,” says a government source, indicating that huge pressure has been exerted from Troika on the issue of the fiscal gap.

According to informed sources, Troika considers the proposals of Greek government “half-measures” and asks for further action in order to agree. The same sources also note that an agreement for the return of Troika in Greece may still be reached.

The negotiating team of troika was comprised of European Commission economist Declan Costello, the ECB’s Klaus Masuch and the IMF’s Rishi Goyal. Representing the Greek side were Mr. Hardouvelis, Labor Minister Yiannis Vroutsis, Administrative and eGovernance Minister Kyriakos Mitsotakis, Deputy Finance Minister George Mavraganis and PM Advisors Chrysanthos Lazaridis and Stavros Papastavrou. Alternate Minister of Finance Christos Staikouris was in Paris for the first day of talks on Wednesday but back in Athens for Thursday’s focus on the budget in Greek Parliament.