The quartet, as the Troika has evolved, includes Declan Costello (EU), Delia Velculescu (IMF), Rasmus Rueffer (ECB) and Nicola Giammarioli (ESM) who have already arrived in Greece and are expected to meet with the Greek FinMin E.Tsakalotos, the Minister of Economy, Giorgos Stathakis. the Minister for Employment Giorgos Katrougalos under the supervision of the Minister of State, Alekos Flampouraris.
Sources from the Ministry of Finance state that the first part of the negotiation, that of proposals and the exploration of the points of difference between the two sides, is not expected to lead to any kind of agreement. The members of the quartet are expected to leave by the end of the week and return a few days later for the completion of the negotiation.
It is expected that the IMF representative, Delia Velculescu will opt to promote severe proposals regarding the National Pension Scheme and she will insist on pension cuts and no increase on the fees paid by the employers, as the Greek government suggests. The Fund is said to be expecting the Greek Parliament to pass measures to the reaching 6.3bn Euro (3.5% of the GNP) for the period from 2016 to 2018. The government on the other hand claims that it will accept no reductions on the main pensions.
The government is also expected to claim that the state revenues were exceeded by 1.9bn euros in 2015 and the country achieved a 0.4% surplus on the GNP rather than a deficit of 0.25% as it was expected.
The two sides are said to have reached some agreement concerning the function and the organization of a Privatization Fund while the issue of the red (delayed) home loans and those of small businesses remains open until the middle of February when a solution is expected to have been found.
In the meantime, the head of the ESM C.Regling stated that the Eurogroup is “strongly committed” to the lightening of the Greek debt but, the application of the reforms takes precedence.
In an interview he gave to the Japanese Yomiury Shibun, Mr.Regling said that: “Crucial issues remain unresolved in the talks with Athens, such as the pension scheme and the budgetary reforms, yet I am convinced that A.Tsipras' government, which was elected for the second time on February with a very different popular mandate, will take all necessary measures”.
C.N.