On Sunday the Greek Prime Minister, Alexis Tsipras said, he was optimistic about the negotiation he is having with his country`s creditor. He had also confirmed that Greece is ready to agree on reforms so that more aid will be provided.
Greece will run out of money by April’20, if the country cannot secure more money from its European counterparts. The EU political experts are suggesting that Greece will put forward the list of economic reforms to their creditors by Monday, in order to secure €7.2 billion ($8.7 billion) new loan from EU-IMF. This will also help them to avoid debt default.
In a statement Tsipras said, “I am confident there will be a happy ending soon to this first phase of the negotiations, and to normalizing the situation.” But the economists are suggesting that the biggest block for Greece to secure more fund is Germany. In a statement on Monday, Germany’s Bundesbank Chief Jens Weidmann said, he is opposing the idea of giving more emergency loans to the troubled country. He also accused Athens of showing lack of respect to Germany and other creditors and squashing their trust.
In recent times Germany is pushing for austerity in Europe. But Greece said, in order to pay back their debt they have to have budget cuts and this will damage their economy and infrastructure. On Friday, the rating agency Fitch cut Greece’s credit rating to ‘CCC’. According to the market analysts this means that the debt default is a ‘real possibility’. But Fitch said, they expect Greece to survive the cash problem.
Tsipras also said that some European countries are trying to force Greece out of Eurozone by not agreeing to the loans. He said, “There are powers [in Europe] which have specific interests and which want a rupture.” Then he added, “But there are also powers - which will prevail - seeking a sincere and honest compromise. He also appealed to the countries not to make any decision just by talking to “economists and technocrats alone.” He also said that, “I can’t believe democratic Europe would choose the path [of a Greek Eurozone exit].”
It was also reported that, EU and IMF is looking into the proposed reforms submitted by Athens. The Greek government said, these reforms will bring € 3 billion without wage and pension cuts. The Greek government had also suggested that these reforms will also bring 1.4 percent economic growth this year.
Tsipras said his main priority is to reduce the debt of his country which is 176 percent of the national output. His government also proposed higher taxes for the rich, as they also want to tackle illegal fuel and cigarette smuggling. It was also reported that Greece is also talking to China to boost their finance. It was also reported that Beijing set to buy 67 percent shares of Piraeus Port, one of the biggest container port in Europe.