Eurogroup Chief Jeroen Dijsselbloem met with Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis today, highlighting the need for cooperation between the new government and its creditors. Dijsselbloem said he told Greece's new government to respect the terms of the existing agreement, warning that unilateral steps would reverse progress made so far.
Tsipras made it clear, however, that his new government is planning a change of course but without creating new deficits and burdening tax payers in other countries. “We are committed by popular mandate to implement our program, which is focused on kickstarting the economy and restoring employment,” he said. Tsipras appeared confident an agreement could be reached with Greece's creditors, telling Dijsselbloem this would be beneficial for Europe as well. He also expressed the government's readiness to proceed with reforms to combat tax evation, clientellism, and corruption.
The Eurogroup chief met with Finance Minister Yanis Varoufakis after meeting with Tsipras. Varoufakis remained steadfast saying Greece's new government was elected on the basis of denial of the logic of the austerity program the country has been under in exchange for bailout loans. “We won't accept a continuation of this self-perpetuating crisis of deflation and unstustainable debt,” he told reporters in a joint press conference with the Eurogroup chief after their meeting.
Varoufakis described the Troika as a tri-party commission integrated into a program which the government has rejected and which the European Parliament said was unsoundly structured. There is a huge difference, he said, between institutional agencies in Eruope such as the European Central bank and the Commission, and international organisations such as the IMF. He added that he offered strong committments on behalf of the government's determination to promote structural reforms that would boot competitiveness, offering guarantees, irst to the Greek people and to its partners, of balanced budgets and sustainable small primary surpluses.
Mr. Dijsselbloem, commenting to reporters at the same press conference, said his meeting with Mr. Varoufakis was, “significant,” and said, “we have mutual interests.” He cautioned against Greece taking unilateral steps which he said would half progress and stressed the need to continue talks. Responding to a question on whether a European debt conference was in the works, the Eurogroup chief said, “we have one, it's called the Eurogroup.”
German Finance Minister: “We won't be blackmailed”
German Finance Minister Wolfgang Schaeuble chimed in on developments in Greece today reiterating his insistence that Greece must, “respect the rules,” and that trust and credibility are the basis for further solidarity within Europe.
Speaking at a conference of German insurance companies, Mr. Schaeuble said the German government is ready for cooperation and solidarity with everyone, but only in this context and in no other, adding that without trust, solidarity is at risk. “We need solidarity in Europe, and besides, we won't be blackmailed,” he added.
His comments did not come without reaction from Greece. Government spokesman Gavril Sakelaridis issued a statement saying, “The positions of the German Finance Minister and his team are well known. Also known throughout the world now is the Greek people's verdict for an exit from the mire of toxic austerity. The Greek government will continue consultations to find a mutually beneficial solution.”