10 Mar 2015
Greek puzzle far from solved – ING
FXStreet (Barcelona) - Paolo Pizzoli of ING, comments on yesterday’s Eurogroup meeting, and further views that the Greek puzzle is far from solved, and room for further manoeuvre seems constrained.
Key Quotes
“The main take of yesterday’s meeting, summed up by Dijsselbloem, but apparently shared by most participants, was that if a speedy and successful conclusion of the review of the extended programme was actually sought, “there is no further time to lose”.”
“The Eurogroup agreed that already tomorrow the Greek government and the institutions will start technical work in Brussels on the first batch of proposed reforms. At the same time, technical teams from “the institutions” would start field work in Athens.”
“According to Varoufakis a second batch of reforms would be submitted next week. As made clear by Dijsselbloem, without a general agreement on the necessary reforms and without evidence of their implementation, no early disbursement would follow.”
“As Greece is apparently facing a severe liquidity shortage, an acceleration on both fronts looks of the essence.”
“In any case, as suggested by the president of the Eurogroup, disbursements would eventually be in instalments.”
“In the meantime, the Greek General Accounting Office has reportedly blocked any state expenditure not related to salaries and pensions, and is trying to postpone obligations in coming months.”
“Should finance minister Varoufakis fail to adapt, a more direct involvement in negotiations of deputy PM Dragasakis cannot be ruled out. Indeed, according to a Mark survey cited yesterday in Greek newspaper Kathimerini, 69.6% of Greeks think that the new government should look for an “honourable compromise” to avoid leaving the Eurozone, while only 27.4% reportedly want Greece to refuse any compromise.”
Key Quotes
“The main take of yesterday’s meeting, summed up by Dijsselbloem, but apparently shared by most participants, was that if a speedy and successful conclusion of the review of the extended programme was actually sought, “there is no further time to lose”.”
“The Eurogroup agreed that already tomorrow the Greek government and the institutions will start technical work in Brussels on the first batch of proposed reforms. At the same time, technical teams from “the institutions” would start field work in Athens.”
“According to Varoufakis a second batch of reforms would be submitted next week. As made clear by Dijsselbloem, without a general agreement on the necessary reforms and without evidence of their implementation, no early disbursement would follow.”
“As Greece is apparently facing a severe liquidity shortage, an acceleration on both fronts looks of the essence.”
“In any case, as suggested by the president of the Eurogroup, disbursements would eventually be in instalments.”
“In the meantime, the Greek General Accounting Office has reportedly blocked any state expenditure not related to salaries and pensions, and is trying to postpone obligations in coming months.”
“Should finance minister Varoufakis fail to adapt, a more direct involvement in negotiations of deputy PM Dragasakis cannot be ruled out. Indeed, according to a Mark survey cited yesterday in Greek newspaper Kathimerini, 69.6% of Greeks think that the new government should look for an “honourable compromise” to avoid leaving the Eurozone, while only 27.4% reportedly want Greece to refuse any compromise.”