ECONOMY

Talks begin on next prior actions

talks-begin-on-next-prior-actions

The creation of a new privatizations fund, part of the second set of prior actions required for the payment of the next bailout tranche of 1 billion euros, is expected to be the next stumbling block in the negotiations between Athens and the country’s creditors.

This second batch of prior actions is “not expected to be too difficult,” according to one eurozone official, as it will not include the entire social security reform after all.

Discussions began on Wednesday in Athens regarding what this second package will comprise, with the final list needing to be ready before the scheduled Euro Working Group meeting on Friday morning – i.e. after the passing of the first set of prior actions by Parliament on Thursday night – for the representatives of the creditors to see whether there are any remaining issues that should be included in the second list.

The EWG will then issue a report saying the first set of prior actions has been completed, so the Eurogroup can approve the disbursement of the 2-billion-euro tranche on Monday. However, the approval for the release of the 10 billion euros required for the bank recap is not expected on Monday, as two eurozone officials say this will happen later, once Brussels knows the precise amount banks will require.