Euro zone finance ministers will not meet on Thursday, as it was somewhat expected, because the international institutions and Greece’s creditors feel more time is needed to discuss the reforms that should bind the country in order to unlock new loans.
Athens and EU/IMF lenders have been discussing to reach an agreement so as to conclude the first review of Greece’s progress according to its bailout program; The sucessful completion of the review will unlock further funds under the bailout package of July 2015. It would also open the discussion regarding Greece’s debt relief, which is a key issue for the Greek government which hopes it will restore investor but also political confidence, after seven years of austerity.
“No additional Eurogroup on Greece this Thursday, more time needed” said the spokesman for the chairman of euro zone finance ministers, Jeroen Dijsselbloem. “Meeting on first review, contingency package and debt at later stage” the spokesman, Michel Reijns said on Twitter on Tuesday.
Right after the Eurogroup was cancelled, government sources said Greek Prime Minister Alexis Tsipras contacted European Council President Donald Tusk on Wednesday to seek a summit of European leaders to discuss the terms of the country's bailout deal and to secure that the July bailout agreement will be respected.
Governmental sources blame the IMF and German Finance minister Wolfgang Schäuble for the delay, which they say follow a pattern. As it was revealed earlier this month by a Wikileaks transcript of the conversation between highly ranked IMF officials, the Fund could use such stalling tactics to put extra pressure on the Greek government and European leaders.
Greece refuses to adopt more specific contingent measures, on the grounds that it is not what was agreed upon last July and it would also be against Greek law. It has however offered to set up a correcting mechanism to automatically cut spending, if targets are not met.
Greece needs bailout funds to pay IMF loans, ECB bonds maturing in July and state arrears.