In the shadow of the vote of confidence next Tuesday, Brussels anticipate the newly appointed Greek Finance Minister Evangelos Venizelos at Eurogroup meeting on Sunday.
The Troika is studying intensively the constitutional law recently, trying to estimate how likely is the voting of the Medium Term Fiscal Program. Its officials are frustrated by the lack of consensus among the political parties in Greece and now try to figure out the new government’s time to live.
European officials fancied a person with experience in EU negotiations. Although the refusal of former ECB member Lukas Papademos led to the appointment of Evangelos Venizelos as a politician with great experience and influence in the parliament. He has also been appointed as Deputy Prime Minister, as a response to Troika’s request for coordination in implementing the Memorandum of Understanding.
The adjustment period is almost zero, because the critical negotiations at the Eurogroup meeting resume two days after his inauguration.
Troika’s main concern on Sunday, besides the ensuring of the release of the fifth aid trance, is deciding on the Fund that would administrate privatizations of €50b.
President of Council of Economic Advisers G. Zanias is expected to be the link at the two-day meeting, who also runs the issue of negotiations on the new loan. However, it remains unclear if the new FinMin could carry government commitments, as the new government has not yet obtain the vote of confidence by the House.
The scenario of a three-month postponement in decision-making, that Germany wishes, is still possible, with the ostensible object to give time to political forces in Greece to regroup. In this case, the agony about the possibility of a default, a word that Commissioner Rehn pronounced yesterday for the first time publically, would be postponed for September.
Olli Rehn is believed to insist on agreeing on a new loan in July, while IMF also intensifies pressures. Germany appears to have softened its stance regarding the participation of private investors in the new loan.
(source: capital)
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