Last Update: 11:30
The talks between top Greek officials and creditors that ended at 1:30 am on Wednesday in Brussels failed to come to a conclusion, even though Eurogroup President Jeroen Dijsselbloem said there was “good progress” made.
Finance Minister Euclid Tsakalotos, Deputy Finance Minister Giorgos Chouliarakis and Labor Minister Efi Achtsioglou made an effort to break the impasse in negotiations before Friday’s meeting of euro zone finance ministers in Malta, with European officials warning of the risks of further delays in closing the bailout program second review.
A European official said on Tuesday that if talks continue to drag, then there might be a need to reassess the bailout program.
European Monetary and Economic Affairs Commissioner Pierre Moscovici said that a swift staff level agreement is “necessary,” noting that he is confident the deal will close within the next few weeks. The statement implies that it is highly unlikely that Greece will achieve anything on Friday’s Eurogroup.
The Greek government is putting the blame on Germany for undermining negotiations by placing new fiscal demands on the table. Indeed, German officials have expressed the need for coming up with new forecasts for Greece’s budget after 2019. This would mean that Greece might need to take additional fiscal measures.
Meanwhile, Prime Minister Alexis Tsipras is trying to find a political solution to break the deadlock in talks. He is in contact with several European state leaders asking for political support.