In World Economy News 22/04/2015
Greek Prime Minister Alexis Tsipras is expected to meet German Chancellor Angela Merkel on the sidelines of a summit in Brussels on Thursday, a senior Greek government official said Tuesday.
European Union leaders have called an emergency summit on Thursday in a bid to address the growing migration crisis in Europe and particularly the Mediterranean following a series of recent tragedies.
However, Greece remains at loggerheads with its European creditors–led by Germany–over its 240 billion euro ($258.4 billion) bailout program.
This would be the third face-to-face meeting Mr. Tsipras has had with his German counterpart since taking office in late January.
Negotiations between representatives from the Greek government and the heads of the teams overseeing the country’s bailout are currently ongoing in Paris and come as the Greek government scrabbles with ever diminishing cash reserves.
Greece’s government issued a decree on Monday requiring public bodies such as state-owned companies and public pension funds to transfer their cash reserves to the central bank as the country’s cash reserves continue to dry up.
The decree, published in the government gazette, came as no surprise, the government having announced the move last week. But it still represents evidence of an escalating cash squeeze amid renewed concerns of a Greek default.
In Paris, French Finance Minister Michel Sapin said that Greece’s decision to pool the cash reserves of public entities at the central bank was only an emergency solution and the country needs to move faster on economic overhauls.
Greece needs a deal to secure billions of euros in bailout aid to avoid defaulting on its debt by this summer and potentially leaving the euro. But the overhauls that creditors want, including further pension cuts and tax increases in a country reeling from years of drastic austerity, could split or bring down the government of radical-left Mr. Tsipras, which was elected on an anti austerity ticket.
