Yesterday the EU was displeased because there was allegedly no specifics. Now Tsipras is promising specifics for tomorrow. I don't know if I like the sound of that. If he's gong to basically give them what they demanded on the referendum on Sunday then I might begin to buy the narrative that he doesn't know what he's doing. Then he would be ignoring the will of the Greek people.
"Two Reuters stories about Germany's stance on Greece, echoing Merkel's comments yesterday: 1) Absolutely no debt haircuts 2) If no agreement Sunday, time to consider other options."
"1) The German government does not see any reason to grant Greece either a classic debt haircut or any other measures that would slash the value of money on loan to the crisis-ridden country, a spokesman for the finance ministry said on Wednesday."
"At the moment and in principle we see, as the chancellor said expressly in her press conference in Brussels, no occasion at all to discuss this issue - there is no leverage or basis for that," Martin Jaeger said at a news conference.
"That refers to a haircut in the classic sense but I explicitly add we also take that to mean measures that aim to bring about a reduction in the cash value of debt - those are things that you hear in discussions under profiling, restructuring and similar things."
"2) If Greece and its European creditors do not manage to agree by Sunday to start talks about a third bailout program, it will be necessary to start thinking about other options, a spokesman for the German finance ministry said on Wednesday."
"If we don't come to a solution on this by the weekend, by Sunday, then, if necessary, we'll have to think about other scenarios," spokesman Martin Jaeger said at a regular government news conference.
Asked about the possibility of a Greek exit from the euro zone, Jaeger said the German government was prepared for all conceivable developments.
http://www.cnbc.com/id/102813959
So Germany says no haircuts but is fine with Greece leaving which would probably end up being a huge haircut. Yet the Eurocrats only find the Greek position hard to understand.
Yet Tsipras is promising a 'specific reform agenda'-whatever that means.
Another snippet from the letter sent by the Greek finance ministry to the ESM.
The Greek government will on Thursday 9 July at the latest set out in detail its proposals for a comprehensive and specific reform agenda for assessment by the three Institutions to be presented to the Euro Group.Says that Greece will propose implementing tax reform related measures and pensions related measures.
The letter from the Greek finance ministry says:
"Consistent with the principles of this medium to long term program, the Republic is committed to
a comprehensive set of reforms and measures to be implemented in the areas of fiscal
sustainability, financial stability, and long-term economic growth. Within the framework of the
program, we propose to immediately implement a set of measures as early as the beginning of
next week."
So cutting pensions is going to get them back to growth? As Bill Mitchell says the last thing they need is more austerity.
http://bilbo.economicoutlook.net/blog/?p=31301
"Two Reuters stories about Germany's stance on Greece, echoing Merkel's comments yesterday: 1) Absolutely no debt haircuts 2) If no agreement Sunday, time to consider other options."
"1) The German government does not see any reason to grant Greece either a classic debt haircut or any other measures that would slash the value of money on loan to the crisis-ridden country, a spokesman for the finance ministry said on Wednesday."
"At the moment and in principle we see, as the chancellor said expressly in her press conference in Brussels, no occasion at all to discuss this issue - there is no leverage or basis for that," Martin Jaeger said at a news conference.
"That refers to a haircut in the classic sense but I explicitly add we also take that to mean measures that aim to bring about a reduction in the cash value of debt - those are things that you hear in discussions under profiling, restructuring and similar things."
"2) If Greece and its European creditors do not manage to agree by Sunday to start talks about a third bailout program, it will be necessary to start thinking about other options, a spokesman for the German finance ministry said on Wednesday."
"If we don't come to a solution on this by the weekend, by Sunday, then, if necessary, we'll have to think about other scenarios," spokesman Martin Jaeger said at a regular government news conference.
Asked about the possibility of a Greek exit from the euro zone, Jaeger said the German government was prepared for all conceivable developments.
http://www.cnbc.com/id/102813959
So Germany says no haircuts but is fine with Greece leaving which would probably end up being a huge haircut. Yet the Eurocrats only find the Greek position hard to understand.
Yet Tsipras is promising a 'specific reform agenda'-whatever that means.
Another snippet from the letter sent by the Greek finance ministry to the ESM.
The Greek government will on Thursday 9 July at the latest set out in detail its proposals for a comprehensive and specific reform agenda for assessment by the three Institutions to be presented to the Euro Group.Says that Greece will propose implementing tax reform related measures and pensions related measures.
The letter from the Greek finance ministry says:
"Consistent with the principles of this medium to long term program, the Republic is committed to
a comprehensive set of reforms and measures to be implemented in the areas of fiscal
sustainability, financial stability, and long-term economic growth. Within the framework of the
program, we propose to immediately implement a set of measures as early as the beginning of
next week."
So cutting pensions is going to get them back to growth? As Bill Mitchell says the last thing they need is more austerity.
http://bilbo.economicoutlook.net/blog/?p=31301
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