Greece-Quartet talks resume. No immediate deal on the horizon

Greece and its creditors (IMF and EU institutions: the Quartet) will resume talks on the implementation of necessary measures in an effort to reach a deal, in Athens, Tuesday. There is little hope for any deal until the Eurogroup meeting takes place in Amsterdam, on Thursday, April 22. The Amsterdam Eurogroup meeting does not include reference to any definitive decisions on the Greek issue, but a mere mention of the progress of talks so far. The Quartet is scheduled to have a first meeting with Greek Finance Minister Euclid Tsakalotos and Economy Minister George Stathakis later Tuesday at the Hilton Hotel to arrange the agenda of talks. The Greek side hopes to get a decision at the Amsterdam Eurogroup meeting, something that can almost certainly be ruled out, judging from the overall stance of the country’s creditors and IMF head Christine Lagarde’s statements that the Greek government has to come up with ‘real measures that can be implemented’. The Greek government has proposed measures worth a total of 5.4bn Euros, while it is willing to talk of a further 3-3.6bn Euros and a ‘zero divergence clause’ to compensate for any fiscal ‘mishaps’ to satisfy the lenders, who insist the suggested measures are difficult to enforce to reach the desired GDP primary surplus. So far the tabled measures include raises in indirect taxes, an increase in the tax free threshold, a hike in VAT on water and electricity from 13 percent to 24 percent, cuts in main and ancillary pensions. Newly hired public servants could also see cuts in their wages, while there is talk of a liberalisation of mass lay-offs. Greece is struggling to strike a deal and get a positive review from its creditors to receive the next tranche of cash provided in the program to cover debts due to the IMF and the ECB in summer.