Greece: Bailout agreement must break vicious cycle, says Tsakalotos

by Magda Panoutsopoulou

ATHENS, Greece

"Any bailout agreement must break the vicious cycle," Alternate Minister for International Economic Relations Tsakalotos said on Friday in an interview with "Agora" newspaper.  

"We must end the cycle of 'extend and pretend'," Tsakalotos said. He referred to previous agreements which provided no definitive solution for the Greek economy. 

 "The government will not sign just any agreement. But we are not determined to break with our creditors. We are working for a good solution, but everyone knows that our limits are very specific," Tsakalotos said.

"We did not say, as we have been accused of, that we do not need help. We just said that there is no point in continuing this policy that leads nowhere," he said.

The Alternate Foreign Minister also said that the agreement reached must put an end to speculations about Grexit.

The agreement, he added, must allow the implementation of another policy, which will give the possibility to large parts of the population to return to the labor market within an economic framework of lower primary surpluses and an investment programme. Achieving a primary surplus, meaning an excedent above expenses, and how large it should be, has been a sticking issue in the bailout negotiations. 

Separately, State Minister Pappas expressed optimism over the chances for a mutually beneficial agreement in an interview with pressproject.gr late Thursday. "SYRIZA is a democratic party. It discusses everything on a democratic basis and takes responsibility for its choices. The deal that will come to Parliament will have our signature, our vote or not," he stated.