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The guessing game over the outcome of Greece's attempts to
resolve its debt dilemma and stay in the euro zone looks set to
continue, with another euro zone summit slated for Monday.
It can be difficult to discern what the different parties want from the tense negotiations – which is why plenty of people have been relying on the old national stereotypes of inflexible Germany versus flighty Greece.
Here, we break down what we know about the different demands.
It can be difficult to discern what the different parties want from the tense negotiations – which is why plenty of people have been relying on the old national stereotypes of inflexible Germany versus flighty Greece.
Here, we break down what we know about the different demands.
The Greek government
Elected on an anti-austerity platform, the new Greek
government needs to deliver on at least some of its promises soon. These
include: revisions to the
cuts which are hitting Greece's citizens hard; a "bridge program" to buy time to negotiate a new debt deal and greater flexibility on the existing conditions of its international bailout, such as its budget targets.
cuts which are hitting Greece's citizens hard; a "bridge program" to buy time to negotiate a new debt deal and greater flexibility on the existing conditions of its international bailout, such as its budget targets.
Germany
As Greece's biggest international creditor, Germany has
understandably been the most concerned about the potential for "moral
hazard" from changes to the current Greek bailout program.
Its politicians want Greece to stay a part of the
euro zone project, and there are increasing concerns about the cost to
Germany if it leaves – a Bild Zeitung story this week estimated the cost at 63 billion euro ($71 billion). Yet can they sell concessions to the electorate?
Other European countries…
…appear to be slightly more in favor of some concessions
to the new Greek leadership – such as a technical extension to the
existing program -- than the Germans. Some of the most important leaders
are also facing challenges to their governments from anti-austerity
movements.
There is also the question of whether other
bailed-out countries, such as Ireland and Portugal, should be given
concessions if Greece is granted them.
The IMF
The International Monetary Fund has stayed diplomatic in
public, as is usual. Christine Lagarde, its managing director, has said
the Greek officials are "competent" and "intelligent" – but highlighted
that any agreement would take time.
Russia and China
To use an apt German phrase: schadenfreude.
Russia and China lose nothing from statements that they could help out struggling Greece, and could gain if negotiations with other countries are made more difficult as a result.
Russia and China lose nothing from statements that they could help out struggling Greece, and could gain if negotiations with other countries are made more difficult as a result.
Greece may inch forward in negotiations following
claims like those of Defence Minister Panos Kammenos, who has ties to
Russian businessmen, that it could seek help from these Russia and
China. However, much like in Cyprus, a Russian bailout is unlikely to
materialize from this particular hot air.
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