EU loses patience with Athens reform proposals

By  GIOGIOS CHRISTEDES  

In  the battle against the threat of bankruptcy Greece is looking for support outside the Euro Zone. On a visit to Moscow officials want to determine whether Russia can provide assistance.  Vladimir Putin may meet with Alexis Tsipras.

Athens, March 29 – Greece tries feverishly to avert national bankruptcy. However, as presented by the government on Friday reform the Euro Zone is still waiting to recieve the reform package from Athens.

“We expect the package early this week,” the Vice President of the European Commission, Valdis Dombrovskis said that in a “World” interview on Sunday.

He complained that Greece is wasting much time. The Greek Prime Minister Alexis Tsipras hopes for a rapid release of the financial funds, once agreement is made with the Euro partners.

Confusion about reform paper

Confusion reigned in the capitals of the euro countries. But the character of the reform document presented on Friday. A Government spokesperson stated stated that this is the list for some time, a so called reform, which should be submitted by Monday.

However, it is clear from the words Dombrovskis and of voices from across euro area countries that this list is obviously not the final concept.

At the weekend, the Athens government negotiated with the institutions of the donors on the proposals. Greece is hoping for an understanding of a quick release of billions helps to avoid insolvency. A positive assessment of institutions is a prerequisite for a positive vote of the finance ministers of the euro-countries. This grant of 7.2 billion euros for Greece could be ready for shipping at the end.

Liquidity situation very close

The financial situation of Greece is very tense, according to all involved. Tsipras admitted in a Sunday newspaper: “Of course the liquidity problem complicates the situation.”

Dombrovskis did not say how much the cash Athens holds. “But the liquidity situation is very tight,” he said. Whether Greece could count immediately after Easter with assistance, he left open. The rating agency Fitch downgraded the credit rating of the crisis e country now down to junk level.

The magazine “Spiegel” reported the Troika to expect little more so that the country this year, still a surplus in the budget – will achieve – hidden interest payments. Billions more financial holes from ten to 20 billion euros would also torn by the stop of the previous government reforms by the new government.

Surprising change of course in privatization policy

In their paper, the government reform goes from a primary surplus in the budget by 1.5 percent this year instead of the current three percent of targeted. A primary surplus is one of the conditions to which Greece had the second rescue package committed in return for aid.

According to insiders, the government in Athens now expects 2015 growth of 1.4 percent. The announced reforms should lead to additional income of three billion euros, pension and wage cuts were not provided, it said. A tax increase is not planned.

In the acute financial needs of the country a surprising change of course the Government indicates for its privatization policy.

Deputy Prime Minister Yannis Dragasakis announced during a visit to China, the government was now but a majority stake in the country’s largest port, the sale in port of Piraeus. The business sale could go forward within a few weeks over the stage. As the most promising candidate shall be the Chinese Cosco Group.

After taking office, the new government had declared under the leadership of the left SYRIZA party in January it would put an end to the austerity and privatization policies of previous governments. (APA / Reuters)

© Spiegel / Translation