In a letter to Jeroen Dijsselbloem,
president of the eurozone finance ministers’ group, obtained by Reuters,
Greece’s finance minister, Yanis Varoufakis, conceded that the Greek
authorities would “refrain from unilateral action that would undermine the fiscal
targets, economic recovery and financial stability”. Crucially, he said
Greece would remain under the supervision of the European commission, the
European Central Bank and International Monetary Fund – the unpopular troika
that the Syriza-led government had insisted it would throw off. Germany
says Greek proposals for a six-month extension to its bailout programme do not
go far enough . Eurozone officials are meeting in Brussels on Thursday to assess the latest
Greek proposal. Raoul Ruparel, the head of economic research at Open Europe,
thinks the Greek government has little chance of getting the rest of the
eurozone to back its plans on labour market reforms, pensions or
privatisation. However, in a briefing paper, he wrotethat the
eurozone could give way on another one of Greece’s key demands, to allow the
government to run a smaller budget surplus, so freeing up money for social
spending. “The Greek election represented a tipping point, meaning that the
rest of the eurozone will have to consider some tradeoffs,” he wrote. A
spokesperson for the European commission president, Jean-Claude Juncker, said
the letter was a positive sign that could pave the way for a reasonable
compromise....
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