Greek delegation heads back to Brussels for new round of talks
Talks between Greece and its lenders are due to resume in Brussels on Saturday after a clutch of government officials flew back to the Belgian capital on Friday in an attempt to salvage hopes of an agreement to secure another 7.2 billion euros in bailout funds.
Deputy Prime Minister Yiannis Dragasakis is leading the Greek delegation, which also includes State Minister Nikos Pappas and Alternate Minister for International Economic Relations Euclid Tsakalotos. Pappas and Tsakalotos were in Brussels earlier in the week but their talks with representatives of Greece’s lenders did not lead anywhere.
It is believed that the delegation is going back to Brussels, where they will meet a representative of European Commission President Jean-Claude Juncker, with proposals aimed at overcoming the deadlock in the talks, which revolves largely around differences over fiscal targets, pension cuts and labor market reforms. Prime Minister Alexis Tsipras spoke with Juncker yesterday ahead of dispatching his team to Brussels.
European Commission sources stressed that the contact with Dragasakis and the accompanying officials would be an exchange of information and not part of the negotiating process as the other two institutions, the European Central Bank and the International Monetary Fund, would also have to take part for decisions to be taken. There was no confirmation last night from Washington that IMF officials would be meeting the Greek delegation in Brussels.
Creditors have advised Greece that an agreement is needed by Thursday, June 18, when eurozone finance ministers are due to meet in Bratislava, otherwise there may not be enough time to approve disbursements or extend Greece’s program beyond the end of the month, when it is due to expire.
The lack of time left to reach a deal led to the possibility of an agreement not being reached being discussed for the first time at Friday’s Euro Working Group meeting, sources said. Greece’s representative, Giorgos Houliarakis, is said to have heard colleagues discuss the need for capital controls and even humanitarian aid in the case of a Greek default.
