In a climate of great anxiety and uncertainty, Greece awaits the next round of tense talks between Prime Minister Alexis Tsipras and European lenders. Sunday is the deadline for completion of negotiations between Athens and Brussels. Will the weekend finally bring an agreement or Greece faces bankruptcy? Optimism that reigned at the beginning of the week about a possible favorable agreement slowly fades under the pressures of European lenders for stricter measures in order for a new financial package for Greece to be approved.
Disagreements between the Greek and European side escalated with another failed meeting of the Eurogroup and exchange of harsh statements between Tsipras and the head of the EU Council Donald Tusk.
“The game is over for Greece,” Tusk sharply pointed out in a message to Tsipras, from whom he received fast reply that million unemployed and thousands of families who support themselves only with pensions of grandmothers and grandfathers are not any game, urging Europe not to underestimate people who already feel humiliated. While he went to Brussels earlier this week determined to return with a sustainable solution, Tsipras yesterday was dramatically isolated and the target of sharp criticism from European leaders, who demand more will to compromise and to accept their proposals for reform. German Chancellor Angela Merkel stressed that Germany will not allow Greece to blackmail it.
Greece insists that they have done everything they can to reach a compromise deal, accepting a number of proposals that are not part of their program and promises to citizens. Finance Minister Yannis Varoufakis said the demands of creditors are paradoxical, adding that Greece is doing everything possible to reach a compromise and to stay in the Eurozone, but it cannot accept a deal that is deemed unsustainable for dealing with the Greek debt.
Some analysts in Greece say that it is very difficult to say with certainty what will the weekend bring for the country. There is uncertainty and restraint and definite predictions are not given. Assessments are that it is clear that the potential new deal will be very difficult for Greece, with strict austerity measures that will again bring economic suffering for the country. But note that even this new financial burden and recessive measures are, perhaps, better and will be easier than dealing with uncertainty and a disastrous situation that will jut over Greece if the country exits Eurozone and returns the drachma.
Even after five months, Athens and Brussels still cannot agree and find the same wavelength about issues of tourism services tax, value added tax for the islands and the cost of the army, as well as health and pension insurance for certain groups. Greek media report that lenders require higher taxes on the islands, raising taxes on farmers and companies, removal of subsidies on diesel to farmers, halving heating assistance for low-income families, limiting early retirement.
