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| Greece auditors vow to do 'whatever it takes' to assemble cuts package | Greece auditors vow to do 'whatever it takes' to assemble cuts package |
| (30 days later) | |
| Renewed determination to resolve the eurozone's runaway debt crisis has been mirrored in Athens, where international inspectors have promised to do "whatever it takes" to assemble a package of spending cuts deemed vital to unlocking the aid that will keep Greece's near-bankrupt economy afloat. | Renewed determination to resolve the eurozone's runaway debt crisis has been mirrored in Athens, where international inspectors have promised to do "whatever it takes" to assemble a package of spending cuts deemed vital to unlocking the aid that will keep Greece's near-bankrupt economy afloat. |
| Visiting auditors representing the EU, the European Central Bank (ECB) and the International Monetary Fund (IMF) had been due to leave Greece on Tuesday. But, in what is being seen as a massive change of heart by the team, senior finance ministry officials said the representatives would stay on in Athens until the long-awaited package, worth €11.5bn (£9bn), is finally sealed. | Visiting auditors representing the EU, the European Central Bank (ECB) and the International Monetary Fund (IMF) had been due to leave Greece on Tuesday. But, in what is being seen as a massive change of heart by the team, senior finance ministry officials said the representatives would stay on in Athens until the long-awaited package, worth €11.5bn (£9bn), is finally sealed. |
| The decision, initially announced at a private dinner between the Greek finance minister, Yiannis Stournaras, and the head of the IMF mission to Greece, Poul Thomsen, highlights the change of climate since the Oxford-educated Stournaras took over the helm of the economic ministry three weeks ago. | The decision, initially announced at a private dinner between the Greek finance minister, Yiannis Stournaras, and the head of the IMF mission to Greece, Poul Thomsen, highlights the change of climate since the Oxford-educated Stournaras took over the helm of the economic ministry three weeks ago. |
| The two men were seen convivially chatting as they enjoyed a meal at the elegant Grande Bretagne hotel on Friday in what officials said marked a "tectonic shift" in the mood between Greeks and their creditors. | The two men were seen convivially chatting as they enjoyed a meal at the elegant Grande Bretagne hotel on Friday in what officials said marked a "tectonic shift" in the mood between Greeks and their creditors. |
| The move allows Athens's fragile coalition more breathing space to debate the cuts. The package for 2013-2014 is a central condition of Greece's receiving more rescue funds under a €130bn loan accord agreed with the EU, the ECB and the IMF earlier this year. The bailout would be the country's second. | The move allows Athens's fragile coalition more breathing space to debate the cuts. The package for 2013-2014 is a central condition of Greece's receiving more rescue funds under a €130bn loan accord agreed with the EU, the ECB and the IMF earlier this year. The bailout would be the country's second. |
| One official who is in daily contact with Stournaras said: "In the past, the troika would always say, "When you are ready, call us," which would ultimately lead to plans being postponed and delays in installations [of aid being delivered]. | One official who is in daily contact with Stournaras said: "In the past, the troika would always say, "When you are ready, call us," which would ultimately lead to plans being postponed and delays in installations [of aid being delivered]. |
| "That has changed. They can see that the new minister is serious, and they want to help. On Friday night, at a dinner that Mr Thomsen requested, it was made clear that the team will stay here until the package is completed, in terms of decisions regarding the measures and how they will be applied." | "That has changed. They can see that the new minister is serious, and they want to help. On Friday night, at a dinner that Mr Thomsen requested, it was made clear that the team will stay here until the package is completed, in terms of decisions regarding the measures and how they will be applied." |
| The representatives had said they would do whatever it took the secure the package, he said. | The representatives had said they would do whatever it took the secure the package, he said. |
| The spending cuts will be the focus of another round of talks on Monday between the prime minister, Antonis Samaras, and the leaders of the two leftist parties also participating in his three-party coalition. At stake are further cuts to pensions and low-income wage packages – cuts the government is desperate to avoid, given mounting levels of hostility to EU- and IMF-dictated reforms, and fears of popular unrest. | The spending cuts will be the focus of another round of talks on Monday between the prime minister, Antonis Samaras, and the leaders of the two leftist parties also participating in his three-party coalition. At stake are further cuts to pensions and low-income wage packages – cuts the government is desperate to avoid, given mounting levels of hostility to EU- and IMF-dictated reforms, and fears of popular unrest. |
| "We are well aware that society has reached its limits," said government spokesman Simos Kedikoglou after a meeting between Stournaras and the labour minister, Yiannis Vroutsis, to discuss "alternative ways" of making savings. "Right now, Greece has to regain its credibility," he said. We have to try to stay on track … the three leaders have agreed that to appear credible we have to find the €11.5 bn … Greece has to keep to its commitments." | "We are well aware that society has reached its limits," said government spokesman Simos Kedikoglou after a meeting between Stournaras and the labour minister, Yiannis Vroutsis, to discuss "alternative ways" of making savings. "Right now, Greece has to regain its credibility," he said. We have to try to stay on track … the three leaders have agreed that to appear credible we have to find the €11.5 bn … Greece has to keep to its commitments." |
| An informal document leaked to the Guardian said the IMF mission chief had assured the Greek finance minister that the troika team, which is also comprised of scores of lower-level technical groups working with ministries, would do all it could "to pinpoint the measures" before leaving the country "to draw up the [debt sustainability] assessment which will open the way to the disbursement of the [next] loan installment." | An informal document leaked to the Guardian said the IMF mission chief had assured the Greek finance minister that the troika team, which is also comprised of scores of lower-level technical groups working with ministries, would do all it could "to pinpoint the measures" before leaving the country "to draw up the [debt sustainability] assessment which will open the way to the disbursement of the [next] loan installment." |
| The document said: "The climate [at the dinner] was exceptionally good and marks a change in the hostile behaviour of the representatives of our lenders that has existed up to now, since Mr Thomsen told Mr Stournara … 'We want to help and will stay for as long as is needed until you have prepared the package.' | The document said: "The climate [at the dinner] was exceptionally good and marks a change in the hostile behaviour of the representatives of our lenders that has existed up to now, since Mr Thomsen told Mr Stournara … 'We want to help and will stay for as long as is needed until you have prepared the package.' |
| Greek reserves are running dangerously low, with public coffers almost empty. | Greek reserves are running dangerously low, with public coffers almost empty. |
| But assurances made by the euro group chairman, Jean Claude Juncker, added to the upbeat mood. Over the weekend, Juncker said EU leaders would do their utmost to keep Greece in the eurozone, and took issue with those who saw the country's expulsion from the 17-nation bloc as the answer to the eurozone's woes. | But assurances made by the euro group chairman, Jean Claude Juncker, added to the upbeat mood. Over the weekend, Juncker said EU leaders would do their utmost to keep Greece in the eurozone, and took issue with those who saw the country's expulsion from the 17-nation bloc as the answer to the eurozone's woes. |
| "Those who think of resolving the problems of the eurozone by excluding Greece or letting it fall by the wayside have not understood the reasons for the crisis," he told German newspaper Süddeutsche Zeitung. "I don't want to diminish the problems that Greece has caused. Greece continues to have the obligation to produce tangible results. [But] kicking out this country will not solve the eurozone's problems. On the contrary. The reputation of the member states will be sullied. There will be huge negative consequences." | "Those who think of resolving the problems of the eurozone by excluding Greece or letting it fall by the wayside have not understood the reasons for the crisis," he told German newspaper Süddeutsche Zeitung. "I don't want to diminish the problems that Greece has caused. Greece continues to have the obligation to produce tangible results. [But] kicking out this country will not solve the eurozone's problems. On the contrary. The reputation of the member states will be sullied. There will be huge negative consequences." |
| Reacting to the remarks, Greek officials said they made for a "pleasant respite" from the harsh language often employed by the German finance minister, Wolfgang Schauble. | Reacting to the remarks, Greek officials said they made for a "pleasant respite" from the harsh language often employed by the German finance minister, Wolfgang Schauble. |
| On Sunday, Schauble repeated that Greece should expect no let-up from its international rescuers. "The aid programme is already very accommodating," he told Germany's Welt am Sonntag newspaper before Monday's meeting with the US Treasury secretary, Tim Geithner. "I cannot see that there is still scope for further concessions. The problem did not arise because the programme had faults, but rather because Greece did not implement it fully enough." | On Sunday, Schauble repeated that Greece should expect no let-up from its international rescuers. "The aid programme is already very accommodating," he told Germany's Welt am Sonntag newspaper before Monday's meeting with the US Treasury secretary, Tim Geithner. "I cannot see that there is still scope for further concessions. The problem did not arise because the programme had faults, but rather because Greece did not implement it fully enough." |
| In recent days, EU policy makers have mooted the idea of another Greek debt write-down, this time with the ECB and national central banks taking losses on the value of their bond holdings. In March, private creditors participated in a huge bond exchange with Greece in what was the biggest restructuring of a nation's sovereign debt in modern times. | In recent days, EU policy makers have mooted the idea of another Greek debt write-down, this time with the ECB and national central banks taking losses on the value of their bond holdings. In March, private creditors participated in a huge bond exchange with Greece in what was the biggest restructuring of a nation's sovereign debt in modern times. |
| Samaras's conservative-led government says it must at least be given more time to implement measures. If successful, that plea would effectively extend Greece's fiscal adjustment programme through to 2016. Prolonging that process is widely seen as the only way of pulling Greece out of its apparent economic death spiral. | Samaras's conservative-led government says it must at least be given more time to implement measures. If successful, that plea would effectively extend Greece's fiscal adjustment programme through to 2016. Prolonging that process is widely seen as the only way of pulling Greece out of its apparent economic death spiral. |
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