Alexis Tsipras confident of EU deal before cash runs out

Greek prime minister Alexis Tsipras yesterday said he was “firmly optimistic” his government would reach a deal with foreign creditors by the end of April despite friction over issues such as pension and labour reform.

Tsipras said several points of agreement had been found since talks first started, especially on areas such as tax collection, corruption and initiatives to distribute the tax burden on those who have the ability to pay.

However, he acknowledged the sides disagreed on four issues: Labour issues, pension reform, a hike in value-added taxes, and privatisations, which he referred to as “development of state property” rather than asset sales.

His comments came after suggestions from European partners that a deal to unlock aid was unlikely next week and that Greece risks running out of cash and defaulting on debt payments.

German finance minister Wolfgang Schauble, among Tsipras’s harshest critics, went so far as to say on Wednesday that “no one has a clue” how a deal could be reached, dampening hopes of a breakthrough at an April 24 meeting of eurozone finance ministers in Riga.

“Despite the cacophony and erratic leaks and statements in recent days from the other side, I remain firmly optimistic that there will be an agreement by the end of the month,” said Tsipras.

“Because I know that Europe has learned to live through its disagreements, to combine its parts and move forward.”

He said he was confident Europe would not “choose the path of unethical and brutal financial blackmail” but instead opt for “the path of bridging differences” and “stability”. Shut out of bond markets and with financial aid frozen, Greece is perilously close to running out of cash and could be forced to choose between making debt payments in May or paying public salaries and pensions.

Greece’s finance ministry yesterday denied a report by the Financial Times that Athens approached the IMF to request a delay in loan repayments.

“Athens did not approach the IMF to request or ask any details about delaying any loan repayment,” a finance ministry official said.

Reuters