Greek leaders hold key Europe talks

Written By Unknown on Rabu, 04 Februari 2015 | 18.19

4 February 2015 Last updated at 10:39

Greece's new government has taken its case to the leaders of the European Commission and European Central Bank (ECB) as it tries to renegotiate the terms of a €240bn (£182bn) bailout.

Prime Minister Alexis Tsipras was warmly welcomed by Commission head Jean-Claude Juncker in Brussels.

And Finance Minister Yanis Varoufakis said he had "fruitful talks" with ECB chief Mario Draghi in Frankfurt.

Greece's radical left government was elected on a pledge to end austerity.

Mr Varoufakis is keen to convince the ECB that Greece's debt payments could be linked to the performance of the economy - the more it grows the more interest Greece would pay - through the use of debt swaps.

However a report in the Financial Times newspaper quoted officials involved in the negotiations as saying that the ECB would oppose a crucial part of his plan - the sale of short-term treasury bills to raise €10bn.

Mr Varoufakis told German newspaper Die Zeit (in German) that he was the finance minister of a bankrupt nation and tried to reassure Germany that Athens' new policies did not mean it was turning its back on reform.

"You should not trust us, but you should hear us out," he said.

His visit to Frankfurt, and the prime minister's meeting in Brussels were the latest in a series of European trips to reassure leaders about the plans of a government elected on 25 January on a promise of writing off most of Greece's spiralling debt.

Mr Tsipras's Syriza party had also sparked alarm on the markets and among eurozone officials when it said it would refuse a new tranche of bailout funding, prompting questions about how it would finance itself.

Greece's current programme of loans ends on 28 February. A final €7.2bn is still to be negotiated, but the new government has already begun to roll back austerity measures.

Mr Varoufakis is hoping to obtain quick cash for Greece while a new plan is agreed amongst the various eurozone members.

Eurozone finance ministers are due to meet on 11 February to discuss Greece's debt proposals.

The Greek prime minister first met Mr Juncker and then European Council President Donald Tusk on Wednesday, as part of the new government's diplomatic offensive.

Mr Juncker was expected to press Mr Tsipras for a "technical" extension of Greece's current deal.

The Greek leader will then travel to Paris to meet President Francois Hollande later.

Greek economy in numbers
  • Unemployment is at 25%, with youth unemployment almost 50%
  • Economy has shrunk by 25% since the start of the eurozone crisis
  • Country's debt is 175% of GDP
  • Borrowed €240bn (£188bn) from the EU, the ECB and the IMF

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