German Chancellor Angela Merkel told journalists that it might still take a few days in order for an agreement to be reached. Similarly, French President Francois Hollande cautioned against expecting an agreement between Greece and its creditors on Monday.
Upon arrival at the Eurogroup, German Minister of Finances Wolfgang Schäuble was more pessimistic in his outlook, telling journalists that “we don’t have anything new, we have not moved since last Thursday”. Mr. Schäuble claimed that Greece had not submitted any substantial suggestions, without which a summit cannot be prepared.
Similarly, the Irish Minister of Finances Michael Noonan stated that «there was such confusion in the night, with alternative versions coming in. There hasn’t been any preparation for the meeting. My expectation is that we will be meeting again on Thursday before the full Council meeting. We are still not quite clear what the actual proposals are«.
The Eurogroup chief Jeroen Dijsselbloem also appeared to be pessimistic about an agreement being reached. When asked by journalists whether there was a chance of a «big breakthrough» at the Eurogroup and Summit in Brussels, he responded that «I leave that up to the institutions to give their views first«.
The Belgian Minister of Finances Johan Van Overtveldt also commented that the Eurogroup would first have to see what the Greek government is proposing, dampening expectations for an agreement on Monday. Likewise, the Finnish Minister of Finances Alexander Stubb told reporters that he had «very low expectations for today» and that «it seems to be a Monday where we have wasted a lost of air miles, as finance ministers and European leaders […] I don’t forsee a breakthough today«.
Earlier, the Head of Cabinet of Jean-Claude Juncker, Martin Selmayr stated that the latest proposal submitted by the Greek authorities is a “good basis for progress” at the critical EuroSummit scheduled for Monday. Mr. Selmayar commented on the latest Greek proposal, which was submitted to the European Commission, European Central Bank and International Monetary Fund, via twitter, late on Sunday evening.
The French Minister of Finances Michel Sapin praised the Greek government’s “quality work” in the latest series of proposals aimed at ending the debt crisis. Mr. Sapin, who gave an interview to a French radio station ahead of the critical summit in Brussels, noted that “I see the work that has been done, it is quality work” and appeared confident that the talks would proceed in “good conditions”.
The European Commissioner for Financial Affairs Pierre Moscovici also appeared confident of an agreement being reached between Greece and its international creditors on Monday. Mr. Moscovici argued on Europe 1 radio that “we are moving in the right direction, we have solid ground for a deal, we just have to consolidate that today” and estimated that “the political will of everyone to preserve the euro, this common good, to ensure that this single currency is irreversible, will win the day”.
The new proposal is said to include a VAT hike in good and the abolition of the discounted rate on tourist islands. Additional measures include an increase of the solidarity tax (for incomes over 30,000 euros), new corporate taxes for businesses with net profits in excess of 500,000 euros and the abolition of early retirements as of 2016.
