EU's Juncker Pushes for Deal With Greece

Date: 13 March 2015 - 19:38

News ID: ۱۱۹۹۱

BRUSSELS (Reuters) - EU chief executive Jean-Claude Juncker and Greek Prime Minister Alexis Tsipras called on Friday for European governments to show solidarity with Greece and resolve a credit crunch that risks dumping it out of the euro zone.
Their comments, as the bloc's German paymaster presses its demands that Athens' new leftist government honor commitments to international creditors, highlighted Juncker's concern over a risk of grave damage to the EU, but may also fuel suspicion in Berlin that the EU Commission could try to water down any deal.
On the day after German Finance Minister Wolfgang Schaeuble said publicly that Greece might stumble out of the euro zonebecause its leaders had failed to negotiate new borrowings, Juncker sounded a note of urgency to EU governments.
"I don't think we have made sufficient progress," he told reporters as he welcomed Tsipras to the European Commission.
"I will make certain proposals to my friend Alexis," he added. "I'm totally excluding a failure ... This is not a time for division. This is the time for coming together."
Commission officials say Juncker, a long-time premier of Luxembourg who took over the EU executive last November, fears some leaders may be underestimating the damage "Grexit" -- or "Grexident" -- would do to European integration.
Schaeuble told an Austrian broadcaster on Thursday there was a risk of Greece losing the euro if negotiations failed: "As the responsibility, the possibility to decide what happens lies only with Greece and because we don't exactly know what those in charge in Greece are doing, we can't rule it out," he said.
While many Greeks resent the terms under which Europeans and the International Monetary Fund bailed them out since 2010, a majority wants to keep the single currency. That would be in jeopardy if the government ran out of credit, prompting Greek banks to lose access to euros from the European Central Bank.
In a ray of good news for Athens, the Greek Finance Ministry said that although tax revenues had dipped in February, there was no repeat of the calamitous fall seen in January, when many people withheld payments ahead of a Jan. 25 snap election.
This will give the state more breathing space as it scrambles to pay back some 1.2 billion euros owed to the International Monetary Fund by the end of the month, as well as meet its usual salary and pension obligations.
Tsipras, trying to satisfy lenders while also retaining the support of voters who elected him to end years of spending cuts, said Greece was doing its bit and others must now help ease its "humanitarian crisis" and mass youth unemployment.
"Greece has already started fulfilling its commitments ... so we are doing our part and we expect our partners to do their own," Tsipras said before his talks with Juncker.
"I'm very optimistic ... we will find a solution because I strongly believe that this is our common interest. I believe there is no Greek problem; there is a European problem."
Juncker, a former chairman of the Euro Group of euro zone finance ministers, said he was trying to help promote an accord after weeks of mounting frustration and mutual incomprehension between the novice Greek leadership and the likes of Schaeuble and the Euro Group's current Dutch chairman Jeroen Dijsselbloem.