The trilateral meeting between Prime Minister Alexis Tsipras, Chancellor Angela Merkel and President Francois Hollande lasted about two hours and was reportedly carried out in a positive and constructive climate. According to that German spokesperson, the three leaders agreed to intensify the negotiations between the Greek government and the institutions.
Prior to the meeting, rumors circulated suggest that the German Chancellor would propose a staggered agreement, but this was later refuted by Berlin. Mrs. Merkel however urged the Greek Premier to carry out a major reform, to unblock aid. The Greek Prime Minister is said to have requested a nine-month extension of the program, until March 2016, when the International Monetary Fund’s involvement formally ends.
During the meeting the Greek government proposed that European Stability Mechanism (ESM) acquired the Greek bonds held by the European Central Bank and which are due this summer. Greece also proposed that the 11 billion euros that were returned to the ESM from the Financial Stability Fund, while the ECB increases the limit for issuing Treasury bills.
Although the negotiations are far from over – there is still disagreement on the primary surplus targets – comments prior to the meeting suggested that an agreement between Greece and its creditors was on the horizon. Eurogroup chief Jeroen Dijsselbloem told journalists that there were only few unresolved issues left and that an agreement prior to the upcoming Eurogroup was possible. Similarly the European Commissioner for Financial Affairs Pierre Moscovici expressed his belief that an agreement between the Greek government and its creditors was closer than ever.
Tsipras meetings with Tusk and Juncker
Prior to the crucial trilateral talks with Merkel and Hollande, the Greek Prime Minister had meetings with the President of the European Council Donald Tusk and the President of the European Commission Jean-Claude Juncker. The meeting with Mr. Tusk lasted about half an hour with Mr. Tsipras informing the European Council president of the ongoing negotiations. Mr. Tusk reportedly stressed the need for a solution. The meeting with Mr. Juncker was reportedly carried out in a very good climate, with the two exchanging ideas on the recent developments and agreeing to meet again on Thursday.
