Eurozone doubtful Greece will make deal deadline

The eurozone is doubtful that a deal will be struck with Greece next week on economic reforms for bailout funds, potentially leaving the country perilously short of money.

Both the Greek government and its creditors have expressed the need for an agreement, at least an outline, to be reached when eurozone finance ministers meet in the Latvian capital, Riga on April 24. But Athens has yet to produce a programme of reforms that is deemed acceptable.

The German government said yesterday it was unrealistic to expect eurozone countries to be able to pay out a new tranche of aid to Greece this month.

“We are negotiating with Greece at the moment. If there is a reform list, then the next step is a so-called Staff Level Agreement to make formal changes to the conditions of the aid programme. This is a complex process and no one in the Eurogroup expects this to be concluded by April 24,” a finance ministry spokeswoman said.

Slovak finance minister Peter Kazimir also doubted the chances of a breakthrough next week.

Greek prime minister Alexis Tsipras, elected on a promise to end austerity, is balking at reforms of the pension system and labour markets which his predecessor had agreed to .

Reuters