Politicians 'waiting for accident to happen' in Greece
José Manuel Barroso, the former head of the European Commission, says policymakers are in danger of letting Greece slip out of the euro as ministers signal Athens is ready to compromise
11:11AM BST 31 May 2015
175 Comments
European policymakers must stop "waiting for an accident" to happen in Greece and work towards a deal with Athens to avoid the country's exit from the eurozone, the former head of the European Commission has warned.
José Manuel Barroso, who led the EC for a decade, said that politicians had taken "too long" to find a solution, which had left Greece in danger of defaulting on its debt.
"Sometimes I get the impression that people are waiting for an accident so that they can really focus [on] avoiding a bigger disaster. It's too long this time that has been taken to find a solution. I believe it's important now to find that solution."
Mr Barroso has previously warned that a Greek exit could trigger the start of disintegration of the euro. "It breaks a taboo and sets a precedent," he said in April.
Speaking on the BBC's Andrew Marr Show on Sunday, Mr Barroso said: "It will certainly be negative for Greece and the euro area if there is a default or if there is a Grexit. But I believe that a solution can still be found."
Greece will remain in focus this week as the cash-strapped government scrambles to pay back €304m (£218m) due to the International Monetary Fund (IMF) on June 5.
Yanis Varoufakis, Greece's finance minister, said restructuring the country's massive debt pile would help the country to escape the “vortex” of a self-reinforcing crisis of debt and recession.
The European Central Bank (ECB) will also convene for its regular interest rate meeting this week, where analysts will be listening out for what president Mario Draghi about the situation in Greece.
Yanis Varoufakis, Greece's finance minister, is seeking a fresh 30-year loan from the eurozone's rescue fund to replace debt held by the ECB. He told Greek newspaper Avghi that the government was lobbying for a low interest loan from the European Stability Mechanism (ESM) with similar terms to its existing €133bn ESM loan.
He said the government wanted a “combination of debt restructuring, investment injections and reforms that go beyond the inhumane practice of cutting pensions, benefits and wages".
Mr Varoufakis also dismissed rumours that he would resign from the Greek government.
Rumours of my impending resignation are (for the umpteenth time) grossly premature...
— Yanis Varoufakis (@yanisvaroufakis) May 31, 2015
@nikimoza1 "In the long run we are all dead." J.M.Keynes. (In the medium run, those nostalgic of the troika days are stuck with me @ FinMin)
— Yanis Varoufakis (@yanisvaroufakis) May 31, 2015
Greece's ruling party Syriza is waiting for a further €7.2bn in rescue funds that are needed to keep the country afloat.
Ministers have suggested that Greece is ready to make compromises to secure the badly needed cash. "We believe that we can and we must have a solution and a deal within the week," said Nikos Voutsis, Greece's interior minister.
Mr Voutsis, who said just a week ago that Greece would not be able to scrape together the €1.6bn due to the IMF this month, told Skai TV: "Some parts of out program could be pushed back by six months or maybe by a year, so that there is some balance."
Cabinet minister Giorgos Stathakis has said the country will avoid a default next Friday, promising to make its latest loan repayment to the International Monetary Fund.
Mr Stathakis, minister of economy, infrastructure, shipping and tourism, said the cash-strapped government would meet its June 5 repayment.
