Greek PM Sees Happy End to Negotiations

Greek Prime Minister Alexis Tsipras forecast a happy end soon to fraught negotiations with creditors on a cash-for-reform deal, and the chairman of euro zone finance ministers said talks were making progress, though not enough for a deal next Monday.

However, with Greece fast running out money, sources close to the talks with the International Monetary Fund, the European Commission and the European Central Bank said there was still no breakthrough on crucial sticking points over pension and labor market reforms and budget targets.

Tsipras, who has taken personal charge of the negotiations, told parliament in Athens: “I am confident that we will soon have a happy ending and that despite the difficulties… we will carry out the agreement which will be concluded soon in Europe.”

The leftist leader said his government was “doing whatever it should in order to reach … an honest and mutually beneficial agreement with our partners”, but gave no indication of yielding on the lenders’ core demands for painful reforms.

The government has said its “red lines” are that it will not make further pension cuts or legislate to ease layoffs in the private sector. It has given some ground on privatizations and value added tax but wide gaps remain.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza