Speaking to Sunday’s Kathimerini, European Commission Vice President Valdis Dombrovskis said that medium- and long-term debt relief measures would not be finalized by May 24 but that a “roadmap” of steps to reduce Greece’s repayments would be ready, with the aim of convincing the IMF to retain its role in the Greek program.
The eurozone and the IMF disagree over the debt sustainability analysis. The Fund sees Greek debt growing much more dramatically than the Europeans if relief measures are not applied. A European official told Kathimerini the differences between the creditors are “huge.”
The aim now appears to be a compromise on the way forward so that the review can be completed by the May 24 Eurogroup, clearing the way for Athens to receive 5.7 billion euros in bailout funding, with another 3-5 billion following based on certain milestones being reached.
Greece also has to tie up some loose ends by next week’s Eurogroup, such as legislating another set of tax rises worth 1 percent of gross domestic product. Dombrovskis indicated that Athens had ignored the Commission’s advice that spending cuts would have damaged the country’s growth potential less than tax hikes.
