by Magda Panoutsopoulou
ANKARA
The Greek government is reportedly redrafting the bailout proposal it made to creditors last week.
After a report in the Athens newspaper Kathimerini on Monday, Minister of Labor and Social Solidarity Panos Skourletis would neither confirm nor deny the redrafting, in an interview on private channel Mega.
Skourletis said that it is "possible" that Athens is revising its own 47-page bailout proposal, faced with the intransigence of the creditors. He added that the SYRIZA-led government will resort to elections if it fails to reach an agreement with Greece’s lenders.
The move comes after European Commission President Ernst Juncker criticized the Greek government for lack of responsiveness on Sunday, and demanded a new offer.
Meanwhile, State Minister Nikos Pappas and Alternate Foreign Minister for International Economic Relations Euclid Tsakalotos are headed for Brussels, where they will lead the government’s delegation in negotiations with the Eurogroup on Wednesday -- reportedly with the new draft of proposals in hand.
The new proposal reportedly offers new fiscal measures so that the government could achieve the primary budget surplus demanded by lenders.
New VAT proposals are also reportedly part of the new package.
But there is considerable resistance within the Syriza party to the proposal in the form that creditors have made it.
On Friday, in the Greek parliament, an intense debate was led by Prime Minister Alexis Tsipras which showed a sharp divergence of views.
On Friday, analysts at Barclays warned that the debate within the SYRIZA party, along with conflicting views from the opposition, could cause a bailout accord to fail.
"The deal could push the Greek government into crisis, putting an end to negotiations," Barclays analyst Francois Cabau said in a note.
Tspras on Friday said: “We need more than an agreement, we need a solution.”
He stated that the proposal presented by European Commission President Jean-Claude Juncker “surprised me unpleasantly.”
The Greek proposals are the only realistic basis for discussion, Tsipras said.
“To summarize the strategic pursuit of the negotiations of the Greek government” Tsipras outlined what his government wants from this agreement and that it must contain six main elements:
--Low primary surpluses,
--A reduction/restructuring of the debt,
--Protection of wages and pensions,
--A redistribution of income in favor of the majority of society,
--Restoring collective labor negotiations,
--An investment program.
Defense Minister Panos Kammenos, coalition member and leader of Independent Greeks (ANEL), told Parliament the government is fulfilling the mandate it received from the Greek people and the party will support a deal which is in line with this mandate.
“It’s time for the government’s proposal. We support the government until the mandate of the Greek people is fulfilled. We won’t move an inch from the limits of this mandate. The deal … will end people’s impoverishment and austerity,” he said.
He added that the government has negotiated with 47 pages proposal which does not include any new memorandums and added “The memorandums are over. The government’s proposal is to free the country.”
The so-called "Memorandum" was the original bailout agreement between the previous Greek government and its creditors signed in 2010.
Defense minister Kammenos, on Sunday urged all Greeks to unite in the government’s battle in order to achieve a deal.
Main opposition new democracy leader and former Prime Minister Antonis Samaras urged the Prime Minister to restore Greece’s credibility domestically and abroad and follow through with reforms.
“Instead of bringing tax cuts, you brought a tax raid. You brought the country to its knees domestically and denigrated the country abroad.”
“The country must change policy but first we must restore the country’s credibility and stability domestically and abroad,” he added.
Samaras further stated that his party is not afraid of elections, however noted that the country is not in a state to hold elections and made three proposals to Syriza’s leader and Prime Minister Tsipras in order to achieve national consensus.
“First, you have to end slander. Secondly, you must change policy and stop protecting the public sector. I’m struggling for the private sector. Third, restore credibility and stability.”
Samaras however accused Tsipras of lying about negotiating with the country’s lenders. “It’s impudence to ask us to state our position on whether we side with the proposal of our creditors, or your own,” he noted.
On the other side, the opposition party leader Stavros Theodorakis, advised the SYRIZA-led government to resolve the infighting within the main coalition party and to push for a national consensus ahead of the next round of negotiations with Greece’s lenders.
He added that his party will support the government in the last effort to reach a deal with the country’ partners, “Syriza doesn’t have a plan or a vision for our presence in Europe, however we will support the proposal that will have the signature of the government and our partners.”
Golden Dawn’s General Secretary, Nikos Michaloliakos, taking his turn, said four months have gone by and the government hasn’t achieved anything in its negotiations.
He then said: “Maybe a rupture would be a solution … Perhaps the love affair with Europe is over?”
During the same debate Communist Party of Greece (KKE) leader Dimitris Koutsoumbas stated that the prime minister froze his pre-election pledges and is preparing to sign a new bailout program.
In his second speech the Prime Minister added that the Greek government will now sign a third memorandum, rejecting a timeframe for achieving a deal.
“For us, there’s no time limit for the negotiations. Our time limit is the achievement of a fair and viable agreement,” he said responding to comments by the opposition.
