Greek government teeters on brink
Taoiseach Enda Kenny rejected suggestions he was overly tough on the Greeks, saying they should not get a debt writedown and advising them to follow Ireland’s example and make spending cuts rather than increase tax.
However, his claims that Irish tax was not increased were disputed by the Nevin Economic Research Institute which set out the increased cost to citizens of Vat, income tax, PRSI and the universal social charge.
Mr Kenny said there was a great sense of frustration with Greece that after all this time there was still no deal on the table. He had tried to encourage the Greeks to accept help.
However Greek prime minister Alexis Tsipras accused the creditors of failing to respect the principles of democracy and suggested they were trying to blackmail him.
The differences between the creditors and Greece in the latest deal was said to be very little. The institutions clarified that they would release €15.5bn remaining from their bailout and funds they were due from the ECB once a deal was agreed.
It would be spread over six months and linked to actions Greece agreed to taking. Mr Tsipras was also told a third bailout programme would be on offer then when their debt would also be restructured.
Mr Kenny clarified that Ireland would support the debt restructuring — longer repayment periods for instance — but not any of the debt being reduced.
Mr Tsipras was to meet his cabinet last night where some of his ministers were calling for the terms to be rejected.
Many of his own party were expected to reject the terms but he could expect support from about half of the centre right New Democracy members of parliament and most of the Potami and Socialists.
He needs his parliament to agree the package before the finance ministers meet this afternoon, and the German and Dutch will not put it to their parliaments before Athens has approved it.
If this is not done before the markets open on Monday, there is always the fear of capital controls being imposed.
If Athens accepts the deal, it is expected to lead to a reshuffle of the government as several of the ministers are expected to vote against it.
Mr Tsipras’s party Syriza has already rejected a suggestion from the previous prime minister, Antonis Samaras, to form a coalition.
