The crisis signals are pouring now more frequent and disaster scenario that left the government in Athens now paints are fully realistic. State treasuries are destitute. Local Government reserves has been withdrawn. But it is not enough. Tax revenues are lower than expected, and expenditure including pensions explodes.
But the fact is also to outstanding emergency loan of 7.2 billion euros is waiting for Greece. The only prerequisite is that Athens meets the reform demands of the IMF, the ECB and the EU.
But there’s the rub.
Prime Minister Alexis Tsipras is difficult to renege on election promises in January. And although he would like so he meets a strong left wing in his own party Syriza, about one third of the members who probably prefer a crash and possible withdrawal from the euro in front of what they see as a humiliating capitulation.
Minister Nikos Voutsis statement in an interview with Greek Mega TV on Sunday reveals clearly this attitude.
– The four payments totaling EUR 1.6 billion. The money will not be paid out because we do not have them.
And then he added:
– The money is not enough to give away.
The evidence suggests Now that negotiations with Greece is reaching an end. Alexis Tsipras hope indeed able to pull out of the talks by the end of June when the current aid package runs out. In that case new negotiations could begin on the new conditions. Greece is considered to have about 50 billion euros over the coming years.
But among lenders growing irritation, and there is no indication at present that they would be prepared to keep Greece fluid until the end of June or July.
– We do not even discuss the matter. Greece must meet its commitments, solder Sunday German Finance Minister Wolfgang Schäuble told.
The key question is therefore whether Athens’ newest gambit is an empty threat or grim reality. In the latter falls snatches capital controls, limited freedom of travel and the bankruptcy of detail.
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