Euro-zone finance ministers gather in Brussels this afternoon for a key meeting on Greece, amid mixed signals about whether an interim deal can be struck to help the cash-strapped country avert default. With Greece facing a €750 million interest repayment to the International Monetary Fund tomorrow, the eurogroup of finance ministers, including Minister for Finance Michael Noonan, gathers in Brussels for two days of talks.
Negotiations between Greek officials and representatives of the European Commission, European Central Bank and IMF took place over the weekend in Brussels in a bid to strike a compromise on a number of key areas – pension reforms, labour market changes and VAT. With Greece still reluctant to cut pension and increase VAT rates, both sides accused the other of stalling progress.
"If it fails, it won't be because of us," German finance minister Wolfgang Schäuble told German newspaper Frankfurter Allgemeine Sonntagszeitung.
Though reiterating his commitment to keep Greece in the euro, he warned of the dangers of default. “Experience in other parts of the world has shown that a country can suddenly slide into bankruptcy.”
Greek prime minister Alexis Tsipras told the Greek parliament on Friday that a solution to the almost four-month impasse was now a question of "political will".
Interest repayment While €
750 million falls due to the IMF, Greece has another month before it technically is in default. Last week, the Greek government paid a €200 million interest repayment to the Washington-based fund.
Despite his dismissal from the Greek negotiation team, Yanis Varoufakis will attend today's meeting in his capacity as finance minister, though is likely to be accompanied by one or more of the senior negotiators on the bailout.
