Leaked EC compromise soln breeds optimism at the 11th hour

The European Commission document by EC President Jean-Claude Juncker outlining a compromise for Greece is seen as a positive sign for the Greek Radical Left Coalition (SYRIZA) government as it comes at the eleventh hour just as the country’s funds are running so low that it is dubious that it will be able to make good on its June obligations to creditors. The leaked document is positive at a time when Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis are eyeing a solution by the end of the week. 

Tsipras is optimistic that a solution – after three months of deadlock with Greece’s creditors from the EC, European Central Bank and International Monetary Fund – would be a conclusive solution to Greece’s problems as long as the red lines set for labor and social security are kept.

Speaking at annual meeting of the Hellenic Federation of Enterprises (SEV), Tsipras said that Greece’s goal in negotiations is to ensure a generaous European investment plan. “The Greek economy cannot depend indefinitely on outside funding,” he said, outlining plans to develop the necessary financing tools, such as a Greek development bank that would promote investments. He noted that this would mean long-term cooperation between the Greek state and the European Bank for Reconstruction and Development (EBRD) that is exected to establish a base and begin operations in Greece.

Both circles from within the Greek government and the European Commission could not hide their annoyance on Monday night following the leak of the proposal that had been planned by Juncker for Greece. Both sides have yet to officially confirm the existence of such a document with the Greek side stating that such a document has yet to reach the Greek government.

SYRIZA MEP Dimitris Papadimoulis even spoke of “sabotage” regarding the leak on his Twitter account, adding “some may wish to burn efforts for a breakthrough.”

Sources in Brussels note that Juncker was surprised by the leak as he had planned to unveil the document to EU leaders during the European Council in Riga, Latvia, and push for its acceptance so as not to give the Eurogroup a chance to disagree.