Italian Premier Matteo Renzi on
Wednesday met German Chancellor Angela Merkel amid renewed hopes
that a deal on the Greece debt crisis might be possible.
But while the premier told Athens to respect the rules and
adopt needed reforms, Merkel snuffed out any hope of an accord
before Sunday's Greek referendum on whether to accept what
international creditors are offering.
Those hopes were raised when Tsipras himself sent a letter
to Brussels saying Athens might accept minor changes to the
proffered deal - but while Renzi and Merkel were talking the
leftist leader went on national TV to urge his beleaguered
countrymen to vote No in the referendum.
Tsipras said a negative vote "would not mean saying No to
Europe but returning to a Europe of values".
He said Greece was still at the negotiating table but
wanted a "sustainable" deal.
Returning to an apparently harder line than shown in his
letter, a tougher stance dictated by his need to play to the
domestic audience, Tsipras accused Greece's creditors of
blackmailing Greeks to get them to vote Yes.
"They tell us, either accept the creditors' proposals or
you will have difficulties," he said, adding that wages and
pensions "will not be lost".
A referendum No "would not mean leaving the euro," Tsipras
went on.
"Those who say we have plans for a Grexit are lying," the
premier said, telling pensioners queuing at banks that "we want
to defend your pensions, we want them to stay pensions, not
pittances".
Merkel, meanwhile, was adamant that no deal could come
before the result of the referendum.
Germany will await the vote before weighing Tsipras'
perceived willingness to come to slightly adjusted terms, Merkel
said.
"Germany has decided: we're going to wait for the
referendum," she said.
Merkel told the press conference with Renzi that "we are
leaving the doors open to talks with Greece but we need Athens
to realise reforms for sustainable growth like other
European countries have done".
She said "we can build this European house together,"
combining different positions.
Contradicting reports of a changed stance by Tsipras,
Merkel said "for now there is no new situation" on the
Greek debt crisis" and the situation would only become clearer
after the referendum.
Renzi, for his part, said he did not agree with the Greek
government's decision to call the referendum.
"I spoke at length with Angela Merkel about Greece," Renzi
told the news conference.
"In my opinion the referendum is a mistake".
On a day that saw major anti-Islamist operations in Italy,
Renzi said he was "more worried about terrorism than Greece".
He said "the real issue in Europe is growth for all, not
VAT on Greek islands".
In other remarks, Merkel hailed Renzi's reform programme
and singled out his government's Jobs Act labour reform for
praise.
"The programme of reforms, like the Jobs Act, is important,
impressive," Merkel said.
"Italy's growth prospects are good and the direction taken
is the right one".
The Eurogroup met later Wednesday to discuss Tsipras'
reported proposals for a third bailout.
After the meeting, Slovak Economy Minister Peter Kazimir
tweeted that the Eurogroup is "united" in its intention to await
the results of the referendum before tabling fresh talks with
Athens.
European Commission President Jean-Claude Juncker, for his
part, also said the EC will have no further contact with Greece
before the referendum.
Juncker added that EC experts have been asked to assess
the effects of a No vote.
Meanwhile the International Monetary Fund said the
priority "remains" that of helping the Greek people.
It said IMF members will not suffer losses in the event of
a failure by Greece to pay back loans.
Wednesday's events played out against the backdrop of a
report in Wednesday's Financial Times saying that Tsipras'
two-page letter to creditors said "the Hellenic Republic is
prepared to accept this staff-level agreement subject to the
following amendments, additions or clarifications, as part of an
extension of the expiring [bailout] program and the new [third]
loan agreement for which a request was submitted today, Tuesday
June 30th 2015".
The letter contains further details on Greece's requests
for another bailout through the EU's ESM fund, of 29.1 billion
euros.
Athens - according to the letter reported by the FT - "will
accept all the reforms of his country's value added tax system
with one significant change: keeping a special 30 per cent
discount for Greek islands, many of which are in remote and
difficult-to-supply regions".
Tsipras has said he is prepared also for pension reform as
requested by the international creditors, but wants the
progressive raising of retirement age (67 years by 2022) to
begin from October instead of immediately.
Earlier Wednesday, Renzi said Greece should follow Italy's
lead by working to respect the EU rules and adopt economic
reforms.
"I'm convinced that Greece must take the highway of
structural reforms," Renzi said, stressing the efforts Italy has
made to respect EU budget rules.
"If the rules are respected everywhere they must be
respect in Greece too," he added in a speech on the future of
Europe at Berlin's Humboldt University before the meeting with
Merkel in the German capital.
"We haven't cut the pensions for early retirees in Italy
so Greece can keep paying them.
"We haven't raised taxes in Italy so that Greek ship
owners can continue not paying them".
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