Time running out, eurogroup chief warns Greece

Greece won little leeway from creditors at a eurogroup meeting in Riga yesterday, as senior European Union officials warned that the country must accelerate reforms in order to unlock any bailout cash.

Amid signs that the EU is growing increasingly frustrated with the pace of reform measures being proposed by Greece as it tries to secure new bailout terms, the head of the eurogroup warned that "time is running out". Speaking after a meeting characterised by a testy exchange of views between ministers, Jeroen Dijsselbloem said a "comprehensive" list of reforms was needed.

“A comprehensive and detailed list of reforms is needed. A comprehensive deal is necessary before any disbursement can take place . . . We are all aware that time is running out.”

Greek finance minister Yanis Varoufakis appeared to offer some concessions ahead of the meeting, which was attended by Minister Michael Noonan, suggesting in a blog post that he was open to some privatisations and the possibility of allowing a commission to supervise tax collection, independent of the government.

He also said his government was willing to make changes to the pension system, a key focus in the technical negotiations under way between Greek officials and representatives of the European Commission, European Central Bank and International Monetary Fund in Athens and Brussels.

Accelerated pace of reforms

But the progress so far has failed to satisfy creditors, with European economics commissioner

Pierre Moscovici

calling yesterday for an accelerated pace of reforms, despite the fact that some progress had been made in recent days.

“Our message today is very clear: we need to accelerate, we need to accelerate from today ,” he said after the meeting. “There is no other choice if we want to reach the goal that everyone shares, which is a stable, prosperous Greece anchored in the euro zone.”

Focus is also turning to the question of Greece’s primary surplus, with Greek officials suggesting they are aiming for a primary surplus of between 1.2 and 1.5 per cent of GDP this year, rather than the goal of 3 per cent for this year set out in the Greek bailout programme.

French finance minister Michel Sapin appeared to suggest that there could be flexibility on the issue of Greece's primary surplus, "as long as it remains positive".

While German chancellor Angela Merkel declined to comment on the content of her discussions with Greek prime minister Alexis Tsipras on the fringes of Thursday's EU summit in Brussels, Greek sources suggested the two leaders had agreed to a lower primary surplus target.

In Athens there were tense exchanges between the government and opposition yesterday in parliament after the government rejected an objection by opposition party New Democracy to a government decree obliging local authorities and state bodies to transfer cash reserves to the Bank of Greece. New Democracy, which led the previous Greek government, said the measure violated the Greek constitution.

While the Syriza-led government is understood to have suggested calling an early eurogroup or conference call next week to discuss the Greek bailout, a breakthrough on the continuing standoff is unlikely before the eurogroup of May 11th. This falls a day before Greece is due to make a €750 million repayment to the IMF. A €200 million repayment is also due to the Washington-based fund on May 1st, though a bank holiday in Greece is likely to push back the repayment date by a number of days.

Earlier this week Greek deputy finance minister Dimitris Mardas appeared to suggest that the state was facing a shortfall of between €350 million and €400 million to meet public-sector bills by the end of the month, but later said this hurdle had been overcome.