Categories: Fundamental Analysis

Greek PM demands EU stop ‘unilateral actions’ as tensions flare

By Costas Pitas and Caroline Copley

ATHENS/BERLIN (Reuters) – Greek Prime Minister Alexis Tsipras lambasted European partners on Wednesday for criticizing a new anti-poverty law hours before it is voted on, saying it was the euro zone rather than Athens that must stop “unilateral actions” and keep its word.

Tsipras’s impassioned speech to parliament as it prepared to vote on his government’s first bill marked the latest escalation in a war of words between Athens and its creditors that has raised the risk of a Greek bankruptcy and euro zone exit.

Tensions over Greek flip-flopping on the terms of a bailout extension agreed last month flared again after an EU official wrote to Athens urging more talks with lenders on the bill before the vote.
The letter told Tsipras’s leftist government to hold further talks with the EU on the bill or risk “proceeding unilaterally” against the terms of a Feb. 20 accord that extended the bailout and staved off a Greek banking collapse.

European Economics Commissioner Pierre Moscovici denied the EU was trying to stop Athens from passing the law but that the official had been correct to remind the Greek government to consult with lenders first.

“The European Union as a whole wants Greece in the eurozone,” Moscovici said, but added that the February deal must be respected. “Greece must stay in the euro zone… but at these conditions.”

An indignant Tsipras defended the so-called “humanitarian crisis” law – which offers food stamps and free electricity to the poor – as the first bill in five years drawn up in Athens rather than ordered by EU technocrats.

“If they’re doing it to frighten us, the answer is: we will not be frightened,” Tsipras told parliament. “The Greek government is determined to stick to the Feb. 20 agreement. However, we demand the same from our partners. Let them stop unilateral actions, respecting the agreement they signed.”

The bill was approved in principle by lawmakers before a formal vote later on Wednesday, when it is expected to pass by a wide margin with opposition support as well.

Members of the governing Syriza party said the remarks by the head of EU delegation to Greece Declan Costello were “an intervention in the legislative process that is an insult to all of us,” in a letter of complaint read out in parliament.

Tsipras, who is hoping for a political solution to Greece’s cash crunch and has sought a meeting with top EU leaders on the margins of an EU summit starting Thursday, continued his attack against “EU technocrats” over the letter.

“The behavior of some, not all, of our partners and especially some of the technocrats and technocrat teams only confirms the arguments of the Greek side,” Tsipras said.
“What else can one say to those who have the audacity to say that dealing with a humanitarian crisis is a unilateral action?”

European Commission President Jean-Claude Juncker said he was concerned about the pace of progress on resolving Greece’s debt crisis and urged those involved to “get a grip”.
“I’m still worried. I’m not satisfied,” he told a news conference. “I’d like everyone to get a grip on themselves.”

“TIME RUNNING OUT”

The latest comments come as Greece risks running out of cash in weeks amid a widening rift with its creditors. Technical teams from Greece and its international lenders started talks last week to try to agree details of reforms, but have made little progress so far.

“We have the impression, and everyone who is dealing with the question shares the impression, that time is running out for Greece,” German Finance Minister Wolfgang Schaeuble, said in Berlin, noting that Athens was refusing a third bailout package.

Shut out of debt markets and with financial aid frozen by irate lenders, Athens needs to quickly find new funding. Tsipras will raise the problem in talks with EU leaders at this week’s summit, his government said.
But EU officials said they did not understand what Greece hoped to achieve by bringing the issue to the summit, where it is not on the formal agenda and could only be discussed on the sidelines and only in broad political terms.

In a small boost for the government, Greece sold 1.3 billion euros ($1.38 billion) of three-month Treasury bills on Wednesday in its third successful auction this month. The sum covered the amount it sought to raise to refinance a maturing issue.

France appealed for restraint to avoid accidentally triggering a Greek euro zone exit.
“France will be do everything it can to avoid an accident and I believe that what we will do will avoid it,” Finance Minister Michel Sapin said. “But no one can be categorical on this and this is why, on both sides, people must control their language.”

Source: reuters.com, investing.com

Advertisement

Click To Join Our Community Telegram Group

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

Recent Posts

Weekly Summary And Review 20th December 2024

Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of December…

3 days ago

US Stocks Face Headwind From Rising Yields After Fed Signals Fewer Rate Cuts

The rally in U.S. stocks is encountering a fresh hurdle -- a potentially problematic rise…

4 days ago

EURAUD Short Term Forecast And Technical Analysis

Hi Traders! EURAUD short term forecast and technical analysis post is here. We do our…

4 days ago

GBPCHF Short Term Forecast Follow Up and Update

Hi Traders! GBPCHF short term forecast follow-up and update is here. On October 3th, 2024…

5 days ago

AUDJPY Short Term Forecast And Technical Analysis

Hi Traders! AUDJPY short term forecast and technical analysis post is here. We do our…

5 days ago

GBPCAD Short Term Forecast Update And Follow Up

Hi Traders! GBPCAD short term forecast update and follow up is here. On November 26th,…

5 days ago