Greek govts battle of negotiations over the red lines

A frenzy of negotiations between Greece and its international creditors from the European Commission, European Central Bank and International Monetary Fund over the last 24 hours is aimed at clinching a deal. Greece hopes to open the EU’s pursestrings, whereas the international creditors are trying to convince the Radical Left Coalition (SYRIZA) government to cross the “red lines” it has set concerning the protection of labor rights and low pensions.

Characteristically, SYRIZA’s Parliamentary Spokesperson Nikos Filis appeared on private MEGA TV stating that the “government will not bow to ultimatums.” He said that a “referendum is still on the table.”

The Brussels Group and the Greek side meet afresh on Monday and hope that a solution will be reached. At this stage, Athens hopes for a honorable compromise. In particular, the government wants the 1.9 billion euros being held by the European Central Bank for profits on Greek bonds will be released for Greece and that part of the 7.2 billion euros benchmarked for Greece will be siphoned to the country.

Prime Minister Alexis Tsipras referred to the conditions for an agreement during his speech at the Economist conference:

- Low primary surpluses

- No pledges for new cuts to wages and pensions

- A necessary restructuring of public debt

- A strong program of public investments