The Greek Logjam Continues even after marathon talks

ATHENS, JULY 11: The Greek Logjam looks very difficult to unlock as marathon nine hours of talks on Saturday ended without any breakthrough. Eurogroup leader Jeroen Dijsselbloem termed the negotiations as “very difficult”.

Eurozone finance ministers are to start deliberations again in Brussels on a bailout deal for Greece. Meanwhile, European leaders have expressed skepticism Greece will ever implement honestly the austerity measures it is proposing.

Mr. Dijsselbloem, who heads the Eurogroup of finance ministers, said that they have been having in-depth discussions about the Greek proposals.

However more than the proposals it was a discussion about credibility and trust that has been badly battered. It is a very difficult process, but there has been progressing. The talks are scheduled to resume at 09:00 GMT.

greek logjam

The European leaders want more from Greece, and it includes more on product and labor market reforms. They are also seeking a commitment from the Greek leaders to pass specific reforms in the Greek parliament in the coming days.

There are other crucial questions that need to be addressed. The money is far too much to offer Greece in a third bailout.

Eurozone unity also seems more and more weakened, and the divisions within the union seem more and more pronounced. On one extreme is Finland, which is opposed about a third bailout for Greece while Italy is all for it.

Italy wants the deal to be pushed through by Sunday for the sake of European unity. However most of the Eurozone countries are unanimous on one fact- it is not just about the future of Greece but most about the credibility of the single currency.

Greek MP’s have supported the latest proposals of Prime Minister Alexis Tsipras notwithstanding the fact that many of the ideas have been rejected by the Greek people in a referendum last Sunday.

Greek Finance Minister Euclid Tsakalotos is in Brussels to convince his counterparts that his government can be trusted to implement the economic reform plans.