Athens---Greece and its creditors were at loggerheads Monday as the new government refused to back down in its bid to renegotiate its massive bailout while Germany and the EU led calls for Athens to be more realistic.
European Commission chief Jean-Claude Juncker told the Greek government it "must not assume that the overall mood in Europe has changed so much that the eurozone will unconditionally adopt the government programme" of new Greek Prime Minister Alexis Tsipras.
Juncker also said he did not expect any new deal on Athens' demands to be reached at an EU summit in Brussels on Thursday, despite Tsipras saying he was "optimistic that we can reach a compromise".
German Chancellor Angela Merkel on Monday pressed Greece to present a "sustainable" finance plan as Athens' insistence sparked fresh fears of a euro exit.
With time running out for Athens to convince the EU to grant it a temporary loan lifeline, Merkel held out the slimmest of hopes for a deal.
"I've always said I'll wait for Greece to come with a sustainable proposal and then we'll talk about this," she said.
Greece will plead its case for stop-gap bridging finance at a special meeting of eurozone finance ministers on Wednesday, with a view to clinching an austerity-free reform deal to run from September 1.
"What counts is what Greece will put on the table at that meeting, or perhaps a few days later," Merkel said.
Greece on Wednesday will propose that "toxic" fiscal obligations under the present EU-IMF bailout deal be replaced by a 10-step reform blueprint drawn up in cooperation with the Organisation of Economic Cooperation and Development, a Greek finance ministry source said Monday.
OECD chairman Angel Gurria will visit Athens on Tuesday to confer with the government on the reforms to be tabled.
In addition, Athens is only ready to deliver a surplus of 1.5 percent of output, rather than the 3.0 percent forecast for this year under the previous conservative administration, the ministry source said.
And Greece continues to request its share of European Central Bank profits from Greek state bonds.
- Schaeuble baffled -
So far, Greece's suggestions have left the European Commission and main paymaster Germany cold.
The new leftist Greek premier's approach also appeared to baffle German Finance Minister Wolfgang Schaeuble.
"If they want our help, there needs to be a programme" agreed with creditors, rather than emergency assistance, the German minister said, adding: "I still don't understand how they (Greece) want to do it."
Schaeuble, who is known for his acerbic comments on Greece's situation, added: "It is not us who need a programme. Germany has no need of a programme."
Greek Finance Minister Yanis Varoufakis said he would go to Brussels as "neither a 'yes man' nor a 'no man'," but promised to temper his aim to please the Greek people with his "duty to find a solution".
AFP
