Greece’s Varoufakis: ‘No debt talks with EU-IMF troika’

_80683623_025662124-1 BBC Eurogroup chief Jeroen Dijsselbloem (left) and Greek Finance Minister Yanis Varoufakis speak during a press conference following a meeting in Athens, Greece, 30 January 2015

Jeroen Dijsselbloem (left) and Yanis Varoufakis spoke at a rather frosty joint press conference

Greece’s new left-wing finance minister says his government will not negotiate over the Greek bailout conditions with the “troika” team from the EU and IMF. Yanis Varoufakis said he was rather seeking direct talks with eurozone leaders, to try to cancel more than half the money Greece owes. He was speaking after meeting Jeroen Dijsselbloem, head of the Eurogroup – the eurozone finance ministers. Mr Dijsselbloem said Greece should stick to its reform commitments. He said Greece and the Eurogroup had a “mutual interest in the further recovery of the Greek economy inside the eurozone” and warned against Athens acting unilaterally in its efforts to renegotiate its bailout. Greece has endured tough budget cuts in return for its €240bn (£179bn; $270bn) bailout, agreed in 2010 with the “troika” – the European Commission, International Monetary Fund (IMF) and European Central Bank (ECB). The BBC’s Mark Lowen in Athens says there was little warmth between the two men at the news conference, with Mr Dijsselbloem making a brusque exit. Breaking with tradition, Mr Varoufakis wore an open-neck shirt – hanging loose at his belt. Mr Dijsselbloem was dressed conventionally. On the troika, Mr Varoufakis said “we have no intention of co-operating with a three-member committee whose goal is to implement a programme whose logic we consider anti-European”. New agreement? The current programme of loans ends on 28 February. There are still €1.8bn of funds that could be disbursed to Greece if it meets the conditions imposed by the troika. Greek Prime Minister Alexis Tsipras chairs the first cabinet meeting of the government in Athens, Greece, on 28 January 2015. Mr Tsipras says Greece will negotiate with its creditors but will not default on its debts Mr Dijsselbloem, who is also Dutch Finance Minister, said the two sides would decide what would happen next before the programme ends. He also met Greek Prime Minister Alexis Tsipras in Athens, who led the Syriza radical left-wing coalition to victory in elections on Sunday. Mr Varoufakis, meanwhile, said Greece was not asking for an extension of the existing bailout, but seeking a “new agreement that will emerge following talks between all Europeans”. He said he would he seek “maximum co-operation” with Greece’s international creditors, but that he would not work through the “troika”, which he called “a committee built on rotten foundations”. Mr Dijsselbloem rejected Mr Tsipras’s idea of convening a European conference on debt. “This conference already exists and it’s called the Eurogroup,” he told the news conference. Tensions over debt Syriza won on an anti-austerity platform, promising to have half of Greece’s debt written off, and to roll back on deep cuts to jobs, pay and pensions. The country’s economy has shrunk drastically since the 2008 global financial crisis, and high unemployment has thrown many Greeks into poverty. The new government has already pressed ahead with cancelling major privatisation projects, including of the two main ports of Piraeus and Thessaloniki. But EU officials have warned there is little appetite among eurozone countries for cutting the debt. Greece has about €20bn (£15bn; $22.5bn) to repay this year, according to the Greek finance ministry. Economists estimate that Greece needs to raise about €4.3bn in the first quarter. Raoul Ruparel, head of economic research at Open Europe think-tank, told the BBC that maturing bonds worth about €6.5bn would have to be paid off to the ECB in July and August. Less worrying for the new government are the €4bn in T-bills – short-term debt that can usually be rolled over. About €9bn in loans also has to be repaid – spread quite evenly through the year. Screen Shot 2015-01-30 at 19.58.36

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