Negotiations on new reforms are going long into the night in Greece.Remember, what’s happening now is not the negotiations with creditors — that’s secondary — but the intragovernmental negotiations: Leaders have to agree on more reforms (cuts, really) in order to get more bailout money.
They’re really pushing it to the wire, but they’re close.
The leaders of Greece’s coalition parties came close to achieving an agreement over the terms of a new bailout for the country early on Thursday but objections over pension cuts prevented the deal from being clinched.
Prime Minister Lucas Papademos called representatives of the European Commission, European Central Bank and International Monetary Fund – known as the troika – back to his office at the Maximos Mansion at about 1 a.m. in an attempt to resolve the dispute.
Reports said that the two sides would have to find a way to make 300 million euros of savings in order to avoid 15 per cent cuts to supplementary pensions and another 15 per cent to basic pensions for former employees at public enterprises.
They want to have a deal before tomorrow’s Eurogroup meeting. If it really is just down to 300 million euros in savings, there should be a way to pull it off.