24 September 2014

Greece: PM meets Merkel

Greek Prime Minister Antonis Samaras told German Chancellor Angela Merkel Tuesday that his country is in no need of a new rescue package from international lenders but requested Berlin's support for his government's plans to boost growth and employment.

Greece has made great progress in restructuring its economy, visible in its reduced budget deficit and earlier-than-expected return to financial markets, Mr. Samaras said.

Following the meeting he suggested Greece was willing to turn down further IMF aid and possibly repay IMF loans early. Separately, Greece is set to unilaterally move ahead with some tax easing measures despite not getting final approval from the EU/IMF/ECB Troika.

Kathimerini reports:

“I believe this cooperation will be completed ahead of schedule,” said Samaras in response to a question about whether Greece is seeking a “divorce” from the IMF. “If that happens, it would be a success, not a divorce,” he added, citing the examples of Ireland and Portugal also exiting their programs.

Samaras pointed to the expected return of growth in the second half of this year and the gradually falling unemployment rate as signs that Greece is turning the corner. Merkel also dwelt on this point.

Samaras did not go into detail about debt relief apart from saying that he expects the maturity of Greece’s loans from the eurozone to be extended and some other steps, which he did not describe, to also be taken. Merkel said there would be negotiations “regarding the next steps in the coming weeks.” The impression left by her comments suggests that Berlin will wait for the latest troika review of the Greek program, due to start at the end of this month, to be completed before any decisions are taken.

Le Monde also reported on the visit, quoting Merkel as approving of Greek results: 'I know the difficult times the country is passing through, but the first tender shoots of success are visible.' Samaras for his part is quoted as saying that Greece is beating its budget forecasts for 2014.

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Kathimerini Article

Le Monde Article

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