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Greek
PM says troika bailout failed, will not ask for extension
RT,
8
February, 2014
Greece's
leftist PM, Alexis Tsipras, has announced that the EU and IMF bailout
of the country’s debt has failed, and that Athens doesn’t plan to
ask for an extension.
“The
bailout failed,”
Tsipras said in his first major speech to the Greek parliament as the
country’s new prime minister on Sunday. “The
new government is not justified in asking for an extension...because
it cannot ask for an extension of mistakes.”
However,
he admitted the possibility that a transitional agreement with
lenders could be negotiated by the end of February in order to to
tide Greece over, in the hope that a new debt pact could be reached.
The
deadline for the EU and IMF bailout of the Greek debt has been set
for February 28. Greek officials, including finance minister Yanis
Varoufakis, have insisted that Greece does not want an extension of
the bailout, but rather a bridge deal which would give it time to
present a new proposal.
On
Saturday, speaking at a government meeting, Varoufakis, promised to
hand his EU counterparts a transitional plan for managing new debt
and reform program next week. The EU finance ministers are set to
hold a meeting on the Greek bailout program on Wednesday.
In
January, President of the European Commission, Jean-Claude Juncker,
said that the EU is not planning to write off Greece’s external
debt.
“There
is no question of canceling the Greek debt. Other eurozone countries
will not accept this,”Juncker
said on January 29, as quoted by Le Figaro. He also made clear that
Brussels did not want to threaten Greece and it is open to dialogue.
The
Greek government was forced to implement austerity measures in
exchange for a €240 billion bailout from the troika of creditors –
the ECB, IMF and the EU. The bailout was paid in two parts - in
2010 and 2014.
During
his speech before parliament on Sunday, Tsipras also pledged to
fulfill his pre-election promise of giving free food and electricity
to those who suffered from austerity. In addition he announced cuts
that would be imposed on government officials’, such as a ban on
ministerial cars and the sale of one of the prime minister’s
aircraft.
Tsipras added he would set up new measures to battle corruption and tackle tax evasion. The prime minister also promised to re-open ERT public television in an attempt to “repair a crime against Greek people and democracy.” ERT was closed in 2013 as part of the previous government’s austerity measures.
Tsipras added he would set up new measures to battle corruption and tackle tax evasion. The prime minister also promised to re-open ERT public television in an attempt to “repair a crime against Greek people and democracy.” ERT was closed in 2013 as part of the previous government’s austerity measures.
His
left-wing Syriza party swept into power after winning parliamentary
elections in late January with promises to enact anti-austerity
measures that included writing off part of the ‘troika’
debt.
Greece’s debt has been a major point of irritation in the EU, with some international creditors starting to question Greece’s membership in the union.
“Europe will continue to show its solidarity with Greece, as with other countries hard hit by the crisis, if these countries carry out reforms and cost-saving measures,” said German Chancellor Angela Merkel in an interview with the Hamburger Abendblatt newspaper published on January 31.
Russian Finance Minister Anton Siluanov said that Moscow wouldn’t rule giving a loan to Athens, though Greece hasn’t outright asked for it.
“Well, we can imagine any situation, so if such [a] petition is submitted to the Russian government, we will definitely consider it, but we will take into account all the factors of our bilateral relationships between Russia and Greece, so that is all I can say. If it is submitted we will consider it,” Siluanov told CNBC in an interview in Moscow on January 29. His statements followed Greece’s open refusal to impose further economic sanctions against Russia.
Greece’s debt has been a major point of irritation in the EU, with some international creditors starting to question Greece’s membership in the union.
“Europe will continue to show its solidarity with Greece, as with other countries hard hit by the crisis, if these countries carry out reforms and cost-saving measures,” said German Chancellor Angela Merkel in an interview with the Hamburger Abendblatt newspaper published on January 31.
Russian Finance Minister Anton Siluanov said that Moscow wouldn’t rule giving a loan to Athens, though Greece hasn’t outright asked for it.
“Well, we can imagine any situation, so if such [a] petition is submitted to the Russian government, we will definitely consider it, but we will take into account all the factors of our bilateral relationships between Russia and Greece, so that is all I can say. If it is submitted we will consider it,” Siluanov told CNBC in an interview in Moscow on January 29. His statements followed Greece’s open refusal to impose further economic sanctions against Russia.
Tsipras
Rejects EU Ultimatum, Demands Bridge Deal: "Greeks Can't Take
More Disappointment"
8
February, 2014
Speaking
defiant tone on Sunday evening, Greece's new Prime Minister Alexis
Tsipras showed no signs of backing away from the commitments and
pledges he and his party made to the Greek people (and that so many
staunch status-quo huggers believe he will back down from). Raging
that Greece "won't take orders by email" any more, Tsipras
warned "Greeks can't take any more disappointment, " and
pointedly stated that Syriza "will make Greece economically
autonomous," in
about as strong a rejection of the EU's ultimatum as is possible by
not requesting a bailout extension and exclaiming unequivocally, "we
will keep our pre-election promises. This is non-negotiable." This
is not just a Greek crisis but a European crisis "and
the solution will be European."
- *TSIPRAS SAYS WILL BREAK OLIGARCHS' HOLD OF POWER IN GREECE
His
speech began aggressively:
- *TSIPRAS SAYS GOVT WANTS GREEK PEOPLE TO REGAIN SOVEREIGNTY
- *TSIPRAS SAYS GREECE "WON'T TAKE ORDERS VIA EMAILS" ANY MORE
- *TSIPRAS SAYS AUSTERITY IS NOT AN EU RULE
- Tsipras "Winning back our sovereignty, restoring equal role in Europe, tackling humanitarian crisis are among our key targets"
- Tsipras "I am fully aware of difficulties and responsibilities"
- *TSIPRAS SAYS REBUILDING GREECE WILL TAKE YEARS
But
then Tsipras appeared to take direct aim at Germany and the EU's
demands...
- *TSIPRAS SAYS GOVT WILL MAKE GREECE ECONOMICALLY AUTONOMOUS
- *TSIPRAS SAYS GOVT WILL FIGHT TO GET OUT OF BAILOUT DEAD END
- *TSIPRAS SAYS WANTS TO NEGOTIATE TO MAKE DEBT SUSTAINABLE
- *TSIPRAS SAYS AUSTERITY WILL MAKE GREEK DEBT PROBLEM WORSE
- "We must build a new independent Greece which is equal to our partners in Europe."
- *TSIPRAS SAYS GREEK GOVT WILL FULLY IMPLEMENT ELECTION PLEDGES
- "We will keep our pre-election promises. This is non-negotiable."
- *TSIPRAS SAYS GREEKS CAN'T TAKE MORE DISAPPOINTMENT
- "We will put an end to presidential decrees and bring back respect for the constitution"
These
seem about as strong a threat/promise as a leader can make that
GREXIT is coming!
- *TSIPRAS SAYS GREEK GOVT HAS NEGOTIATING STRATEGY
- *TSIPRAS SAYS COMMITMENT IS TO SERVE INTERESTS OF GREEK PEOPLE
Then
Tsipras takes aim at previous governmental decisions...
- *TSIPRAS SAYS THIS WILL BE GOVT THAT STAYS TRUE TO ITS WORD
- "The previous gov't wanted its successor, but also Greece, to fail. They forgot to account for Greek people"
- "The Greeks will take part in the negotiations - not just technocrats."
- "Our partners wanted 6-month extension of bailout but previous gov't demanded two months"
Finally
he concluding, fire and brimstone exuding...
- "Things are difficult in Europe, but they are changing. Greece will play a leading role"
- "The problem is not just Greek - it is European - and the solution will be European"
- *TSIPRAS SAYS CRISIS NOT JUST GREEK, IS EUROPEAN CRISIS
- *TSIPRAS SAYS WON'T NEGOTIATE ON GREEK NATIONAL SOVEREIGNTY
- *TSIPRAS: GREEK PEOPLE GAVE MANDATE TO END AUSTERITY, BAILOUT
He
ends with his demands, clearly
rejecting Europe's ultimatum by not asking for a bailout extension...
- *TSIPRAS: GREEK GOVT WON'T ASK FOR BAILOUT EXTENSION
- *TSIPRAS: GREEK GOVT HAS NO RIGHT TO ASK FOR BAILOUT EXTENSION
- "We want a bridging deal - until June - to give us a chance to kickstart development."
- "We're asking for bridge agreement until summer. Despite difficulties, this is possible"
- *TSIPRAS SAYS CONFIDENT GREECE CAN REACH AGREEMENT IN 15 DAYS
- Greek PM Alexis Tsipras says minimum wage will be raised to previous level of €751 but gradually until 2016
Here
is Reuters'
take:
Greek PM Tsipras says EU bailout failed, rejects extension
Greek Prime Minister Alexis Tsipras on Sunday dismissed his country's European Union and International Monetary Fund bailout and said he would not ask EU leaders for an extension. But he said it was possible to negotiate a transitional agreement with lenders by the end of the month to tide Greece over until a new debt pact had been reached. "The bailout failed," he said in his first major speech to parliament as premier. "The new government is not justified in asking for an extension ... because it cannot ask for an extension of mistakes,"
Greece's current bailout expires on Feb. 28 and the EU wants Athens to apply for an extension, including the commitment to reforms. Greece has ruled that out, setting the stage for clashes in the coming week at an EU summit and finance ministers' meeting.
In
Tsipras' own words:
In summary:
- Greece cannot back down (mandate is clear)
- Greece rejects bailout extension (implicit GREXIT unless EU backs down)
- Europe cannot afford repeat mistakes - will not humiliate one nation.
- Greece's first priority: humanitarian disaster
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