Sunday, February 22, 2015

Greece's anti-austerity government is presenting its first concrete proposals for an alternative debt plan at an emergency meeting of eurozone finance ministers in Brussels.  The government wants to overhaul 30% of its bailout obligations, replacing them with a 10-point plan of reforms.  But EU ministers have warned that Greece must abide by existing terms.  The EU-IMF bailout for the debt-laden country expires on 28 February and Greece does not want it extended.  Instead the new Athens government is asking for a "bridge agreement" that will enable it to stay afloat until it can agree a new four-year reform plan with its EU creditors.  Thousands of left-wing demonstrators have rallied in Athens in support of their government's proposition.   Prime Minister Alexis Tsipras's government won a confidence vote on Tuesday, with the support of 162 deputies in the 300-seat parliament.  The Athens stock exchange then fell by 4% ahead of the emergency Eurogroup meeting, which will see Finance Minister Yanis Varoufakis unveil the controversial debt proposals.  The Syriza-led government says the conditions of the €240bn (£182bn; $272bn) bailout - sweeping spending cuts and public sector job losses - have impoverished Greece.  It rejects the "troika" team - the EU, International Monetary Fund (IMF) and European Central Bank (ECB) - overseeing the bailout's implementation.  The government's proposal for overhauling its bailout comes in four parts, according to a finance ministry source widely quoted in Greek media.  Under the first part, Greece would co-operate on 70% of its bailout conditions but wants to scrap 30% - replacing it with 10 new reforms to be agreed with the Organisation for Economic Cooperation and Development (OECD). It is unclear what these would be.
At a joint press conference on Wednesday, OECD head Angel Gurria told Mr Tsipras that his organisation would "work with Greece in getting growth back not only on the books but also... to the Greek citizens".  The government's plan also includes bond swaps and a proposal to reduce the primary budget surplus target for this year to 1.49% of GDP, rather than the 3%.

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