Greek PM expects early bailout exit

http://www.theguardian.com/world/2014/sep/23/greek-pm-expects-early-bailout

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The Greek prime minister, Antonis Samaras, emerged from talks with the German chancellor on Tuesday saying Athens may soon no longer need international aid to keep its economy afloat.

“We need to become a normal country, and we’ve proved that we are reliable and we can stand on our own feet,” Samaras told reporters after meeting Angela Merkel in Berlin. “Greece will soon propose its own framework of reforms for the coming years.”

Lavish in her praise for Greece, Merkel said it was clear that the “first tender shoots of success” were visible after years of painful spending cuts.

But with a funding gap of about €12bn (£9.4bn) looming next year, Berlin refuses to rule out a third bailout. EU officials see financial help as the only way of exerting pressure on Greece to implement unpopular reforms. As part of efforts to wean itself off international support – and the corrosive effects of austerity that have been the price of aid – the Greek prime minister said he foresaw Athens exiting its bailout accord ahead of schedule. Rescue funds from the International Monetary Fund – one of three creditors invested in a €240bn financial support programme for Greece – would likely be suspended earlier than 2016 when they are due to expire.

“I believe this cooperation will be completed ahead of schedule,” said Samaras rejecting speculation that Athens was preparing for a “divorce” from the Washington-based Fund. “I believe that we can certainly cover our funding needs from next year. We will see what happens with the next bailout tranches.”

Eager to end one of the harshest phases of modern Greek history – wracked by its longest recession on record Greece has seen its economy contract by more than 25% since the crisis began – Athens’s fragile coalition is keen to distance itself from lenders.

The prospect of early elections has added to the pressure for Greece to strike a “new deal” with its partners, particularly pro-austerity Berlin.

The radical left opposition Syriza party, whose popularity has soared on the back of its anti-bailout rhetoric, has threatened to block the government’s candidate for president when the incumbent’s term expires in February, making polls an increasing possibility.

The party’s leader, Alexis Tsipras, is leading the attack in Europe on “Merkelism” and the need to end anti-growth policies.

Samaras insists that with his administration’s wafer-thin majority, further cost-cutting reforms would be rejected by the Greek parliament.