Deputy prime minister sees Greek proposals as ‘solid basis for negotiations’

A set of Greek proposals presented on Friday and later approved in parliament by the Greek parliament have been cautiously welcomed by Malta’s deputy prime minister.

“Greece’s proposals seems to provide a solid basis for meaningful negotiations, though they still need to be evaluated properly,” Louis Grech said.

Speaking at a MEUSAC conference on the European Union, Grech concluded that the EU was going through a rough patch.

“It is not yet business as usual […] this is the most delicate of times that the European integration process has ever faced,” he said.

Grech insisted that “ordinary citizens”, especially those coming from the weaker economies, feel an increasing sense of uncertainty and betrayal”.

“Events in Greece are dramatic and emotive. Whatever the outcome is, they are not to be underestimated. The end result is that the EU landscape will have to change in order to reflect the realities that are emerging. Ultimately, the current situation may serve as a strong wake up call for positive action.”

Finance Ministers of the Euro area are gathering in Brussels today to discuss the three-year rescue programme for Greece. Greece needs the unanimous approval of the Eurogroup green lighting the €79 billion bailout. Meanwhile, the Greek government has promised to carry out a radical austerity programme worth nearly €13 billion.

Leaders of the European Union will be meeting tomorrow for an emergency summit – the first meeting will be held among the heads of states of the euro area which will be followed by a European Council of the 28 member states.

Still making headlines is former Greek finance minister Yanis Varoufakis who is accusing the creditors – the European Commission, the European Central Bank and the International Monetary Fund – of never ceding to Greek debt relief.

“Schäuble is convinced that as things stand, he needs a Grexit to clear the air, one way or another. Suddenly, a permanently unsustainable Greek public debt, without which the risk of Grexit would fade, has acquired a new usefulness for Schauble,” Varoufakis wrote in the Guardian.

“What do I mean by that? Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.”

The spotlight is on German Chancellor Angela Merkel and finance minister Wolfgang Schaeuble who wield the most power in granting Greece the third bailout package. Germany’s loan to Greece totals some €56 billion – around €700 per German citizen.

A German newspaper claims that creditors don't believe the Greek government's fiscal measures go far enough.

While Merkel may be heading towards a vote of confidence in the Bundestag, international pressure is on her to strike a deal with Greece.