Stournaras Says He Can Seal Troika Deal

While Greece’s international lenders said they are “miles apart, billions apart” from an agreement with Greece on how the government can fill a looming budget hole of as much as 2.9 billion euros and implement more critical reforms, Finance Minister Yannis Stournaras, always optimistic, said he still believes something can be worked out.
Envoys from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) were due to leave AThens on Feb. 14 even though no agreement was in sight but Stournaras said he still hoped to convince them Greece can plug the gap by making cuts in social security, going after tax cheats and other unspecified plans.
The newspaper Kathimerini said it was told by unnamed sources that the Troika might agree that the difference could be halved and be only 1.5 billion euros, a political compromise that was at odds with its own mathematical calculations up to now. It was said that was because Greece has persuaded them it can bring in more taxes than projected next year although all previous efforts to rein in tax evaders have mostly failed.
Still, that is one billion euros ($1.37 billion) higher than Greece wants and as Prime Minister Antonis Samaras is eager to avoid breaking his promise not to impose more austerity if that’s demanded by the Troika in return for releasing a pending one billion euro installment and that the government must implement more tough reforms.
Troika officials will brief the Eurogroup on Nov. 14 about the progress of the latest Greek review but there will be no decision regarding the disbursement of the next bailout tranche it was reported. An EU official in Brussels told journalists that there is not likely to be a verdict at next week’s meeting of Eurozone finance ministers, nor the one on Dec. 9, prolonging Greece’s agony.
He suggested that there were “miles and billions” separating the two sides and a final decision might not come until after the “skiing holidays.” Stournaras seemed angry at that and insisted that Greece and the Troika are edging toward a deal.
“Whoever made this statement, which does not reflect the constructive discussions with the Troika, should have the courage to say the same thing using his name,” said the minister of the EU official who spoke to reporters on condition of anonymity. “We are not miles apart, just meters,” he said. If the Troika leaves this week the representatives may not return to check the books and re-open negotiations until Nov. 22.