UPD (Wed): P. Moscovici gives Greece a 6-day deadline for reforms before Monday’s Eurogroup (pics)

EU Economic and Monetary Affairs Commissioner Pierre Moscovici met with Greek Finance Minister Euclid Tsakalotos and Alt. Finance Minister George Chouliarakis on Wednesday. He said that Greece should remain in the Eurozone while returning to growth and pointed to the European Commission’s solidarity towards Greece. The commissioner proposed more taxes, combined with pension and health cuts, in exchange for foreclosures on primary residences.

Nonetheless, he did not fail to stress that the next steps need to be taken by the government before the Eurogroup meeting on November 9, essentially giving Greece a six-day ultimatum in passing through prior actions that are required for Greece to fulfil. It became clear that even with negotiations there will still be dubious results as he avoided making any commitments.

He noted progress, adding that Greece is working in the right direction but said that there are still several issues that need to be resolved. He expressed optimism regarding a resolution, while adding that an agreement would be difficult without a resolution to outstanding issues. These are:

– Finding equivalent measures to make up for the imposition of VAT in private education

– Changes to the 100 settlement program as the institutions believe that large debt owners are still getting away

– Social security is to be discussed between Moscovici and Labor Minister George Katrougalos on Wednesday

– Health expenditure

He said that the goal is to protect deposits, underlining the first step in this direction over the weekend. Regarding debt, Moscovici noted that he wants to work to create a success story and reach a result that would be politically accepted by the other EU governments, while adding that the European Commission would listen to the proposals of The European Central Bank and International Monetary Fund before proposing solutions.

On his part, Tsakalotos pointed to a road map that begins with recapitalization, followed by a review of the Greek economy before debt is dealt with. “If there is good faith, I can’t see why there won’t be an agreement on Monday with the Eurogroup,” he said, underlining his efforts to explain to creditors that Greece is a unique case and there are scenarios that can and cannot be enforced at times of recession.

Discussion on Greek debt will begin before Christmas, rather than November as had been hoped.

Moscovici met with PM A. Tsipras

EU Economics and Monetary Affairs Commissioner Pierre Moscovici met with Greek Prime Minister Alexis Tsipras on his two-day visit to Athens on Tuesday and Wednesday. Following the meeting, he expressed the intent of Greece’s EU partners to collaborate with Greece so as to construct a climate of “trust” that is vital when drawing development to Greece. Leaving Maximos Mansion he stated that the EU is on Greece’s side.

“We have a good momentum for Greece at the moment,” he told journalists, while expressing the necessity of “trust”. “We’re ready to make every effort to help Greece implement the reform program so that there will be success for the Greek people and Greece,” he said

Moscovici and Tsipras discussed a number of issues, including the recapitalization of Greek banks and the issue of non-performing (so-called “red”) loans, but he refrained from delving deeper into what had been said. The EU commissioner sufficed to said that the a necessary condition for the installment of the next tranche would be for the Greek government to meet its pledge of prior actions.

Regarding debt, Moscovici said that the first review is a priority before the matter of Greek debt is considered. He said however that it is “viable and realistic.”

Deputy Prime Minister Yiannis Dragasakis and State Minister Nikos Pappas also attended the meeting.

Following his meeting with Tsipras, Moscovici met with Finance Minister Euclid Tsakalotos and Alternate Finance Minister George Chouliarakis. On Wednesday he will meet with Labor Minister George Katrougalos.